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RETURN  TC  ^P-32-CU 

INTELLIGENCE  .ja&JULX 

MAVY  DEPARTMENT 


WAR  D I ARY 


(        ♦ 


* 

^ 


i 


German  Naval  Staff 
Operations  Division 


DBCUSSFlED-MfT.  0445,  OPNAVIKST  5510.10 

■»     9/C         DATT   --7-67 


PART  A  VOLUME  28 


December  1941 


9862 


DECUSMJED 


WAR  DIARY  OP  THE  GERMAN  NAVAL  STAFF 
(Operations  Division) 

PART  A 
December  1941 


Chief,  Naval  Staff:  Grand  Admiral  Raeder,  Dr.  h.c. 

Chief  of  Staff,  Naval  Staff:  Vice  Admiral  Fricke 

Chief,  Operations  Division,  Naval  Staff:  Captain  Wagner 


Volume  28 

begun;  1  Dee.  19^1 

closed:  31  Dec.  19*1 


9862 


CaWIDcETL-kL 


OFFICE  OF  NAVAL  INTELLIGENCE 
Washington,  D.  C. 


Foreword 


1.  The  Office  of  Naval  Intelligence  has  undertaken  to  translate 
important  parts  of  the  War  Diary  of  the  German  Naval  Staff.  The 
present  volume,  entitled  War  Diary  of  the  German  Naval  Staff,  Op- 
erations Division,  Part  A,  Volume  2tf,  is  the  first  one  of  the 
series  to  appear.  Other  volumes  will  follow  shortly. 

2.  The  War  Diaries,  Part  A,  are  important  because  they  contain 
a  day  by  day  summary  of  the  information  available  to  the  German 
Naval  Staff  and  the  decisions  reached  on  the  basis  thereof.  To- 
gether with  the  Fuehrer  Conferences  on  Matters  Dealing  with  the 
German  Navy,  1939- 19^5 #  which  are  in  the  process  of  being  pub- 
lished by  this  office,  the  War  Diaries  should  provide  valuable 
material  for  the  study  of  naval  problems  arising  from  total  war. 
The  War  Diary,  Part  A,  is  also  a  useful  index  to  the  German  Naval 
Archives  of  World  War  II;  references  may  be  found  in  the  micro- 
film library  of  Naval  Records  and  Library. 

3.  Due  to  the  cost  of  publication,  only  a  limited  number  of 
copies  could  be  made;   it  is  therefore  desirable  that  the  copies 
which  have  been  distributed  are  made  available  to  other  offices 
which  may  be  interested. 


Washington,  D .  C , 
19^7 


9862 


c 


CONFIDENTIAL 

1  Dec.  1941 

Items  of  Political  Importance 

Great  Britain; 

In  a  speech  on  the  occasion  of  the  beginning  of  "Navy  Week",  the 
First  Lord  of  the  Admiralty  declared  that  Japan  is  close  to  com- 
mitting a  tragic  error,  should  she  choose  to  follov  the  voices 
of  her  chauvinistic  militarists.  Japan  can  expect  nothing  from 
Hitler  tut  the  same  fate  as  Italy.  Aid  to  Russia  depends  main- 
ly upon  accelerating  British  production  in  order  to  keep  the 
British  Armed  Forces  well  equipped. 

According  to  news  agency  reports,  a  state  of  immediate  readi- 
ness has  been  ordered  in  British  Malaya.  An  Armed  Forces  High 
Command  has  been  created  for  Burma. 

British-American  discussions  about  economic  consequences  of  the 
Lend-Lease  Law  are  continuing,  and  are  said  to  have  led  to  con- 
siderable discord  between  the  British  Minister  of  Foreign  Trade 
and  the  U.S.  Ambassador.  For  details  see  Political  Review  No. 
282. 

Turkey; 

According  to  a  DNB  report  from  Ankara,  news  about  the  arrival  of 
Russian  warships  in  Turkey  are  to  be  regarded  with  considerable 
skepticism.  Actually  only  three  loaded  tankers  have  entered  the 
Bosporus  so  far.  All  reports  about  the  passage  and  arrival  of 
Russian  warships  are  obviously  premature. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

I. >  The  Chief,  Naval  Communications  Division  reports  that  a 
teletype  decoding  machine  has  fallen  into  enemy  hands  in  North 
Africa.  The  loss  is  unimportant.  The  alleged  bad  results  at- 
tained by  search  receivers  (S-Geraete)  on  destroyers  are  being 
checked  by  special  officials.  Inquiries  so  far  have  indicated 
that  the  actual  technical  installations  meet  all  specifications. 

II.  Naval  Staff,  Operations  Division,  Foreign  Affairs  Section 
reports  that  the  Turkish  Government,  on  account  of  the  German 
protest  regarding  entrance  and  passage  of  Russian  vessels  in 
the  Straits,  has  assented  to  procedure  in  accordance  with  regu- 
lations laid  down  at  the  Montreux  conference. 

III.  The  Armistice  Commission  will  begin  the  planned  conferences 
on  military  questions  on  27  Dec.  First  of  all,  the  question  of 
making  French  tonnage  available  for  shipping  troops  and  supplies 
to  North  Africa  will  be  taken  under  consideration. 


_1_  9862 


1  Dec.  19*U  CONFIDENTIAL 

Situation  I  Dec.  19*11 

I.   War  In  Foreign  Waters 

1.  Enemy  Situation; 

North  Atlantic ; 

According  to  newspaper  reports,  the  assignment  of  U.S. 
Naval  Forces  to  the  Atlantic  has  permitted  the  British  Navy  to 
send  considerable  reinforcements  to  the  Pacific  as  well  as  to 
the  Mediterranean.  A  statement  of  further  particulars  concern- 
ing the  suspension  of  the  Neutrality  Act  in  the  U.S.  may  he 
read  in  News  Analysis  No.  41,  Naval  Staff,  Foreign  Navies  Branch. 

According  to  a  Reuter  report  from  Washington,  official  circles 
there  know  of  the  existence  of  a  secret  device  for  long  distance 
locating  of  planes  and  ships.   This  device  has  apparently  been 
in  use  for  some  time.   It  is  said  to  be  possible  to  locate  planes 
as  well  as  naval  craft  on  the  surface  and  under  water  with  this 
device. 

2.  Own  Situation: 

Ship  "41"  is  informed  by  Radiogram  1200  about  contents 
of  a  deciphered  secret  radio  report  of  Admiralty  to  British 
cruiser  SIDNEY  and  request  to  send  position  not  later  than  10 
Dec.  (see  War  Diary  30  Nov.). 

It  is  unlikely,  however,  that  the  radiogram  will  still  bring  re- 
sults, since  there  could  hardly  be  any  doubt  about  the  Admiralty 
report.  But  it  seems  advisable  in  any  case  to  send  the  message. 

Reports  on  the  Enemy  Situation  by  Radiogram  1305,  1500  and  2048. 


II.   Situation  West  Area 

1.  Enemy  Situation; 
Nothing  to  report. 

2.  Own  Situation; 

Atlantic  Coast; 

Enemy  daylight  air  activity  in  the  La  Pallice  sector. 
No  bombing. 

Channel  Coast; 

Battery  "Hundius"  and  Army  Coastal  Battery  *308' laid 
a  barrage  on  enemy  PT  boats  which  had  been  reported  by  harbor 
defense  craft  at  2330.  Results  were  not  observed.   On  route 


c 


_2-  9862 


1  Dec.  1941 


♦ 


"Lila"  skirmish  "between  1st  Motor  Minesweeper  Flotilla  and  Brit- 
ish PT  boats. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation: 

Aerial  activity  normal  during  the  day,  becoming  lively 
in  the  evening  throughout  entire  North  Sea  area.  Radio  monitor- 
ing intercepts  message  from  British  vessel  about  sighting  two  PT 
"boats  in  the  Harwich  area. 

Own  Situation: 

Unidentified  targets  located  off  Hook  of  Holland  were 
fired  on  by  battery  "Veneta"  during  enemy  air  attacks  centered 
mainly  on  Hamburg  and  Emden  in  the  night  of  30  Nov..  Emden  sus- 
tained damage  to  the  extent  of  30  houses  destroyed  and  about  300 
damaged.  There  have  been  no  reports  of  major  military  or  eco- 
nomic damage  throughout  the  area.  Counting  the  5  planes  defi- 
nitely shot  down  during  that  night  (see  War  Diary  30  Nov.),  the 
total  number  of  planes  shot  down  within  the  command  area  of  Ad- 
miral, North  Sea  Station  has  been  brought  up  to  250. 

2.  Norway : 

Z  "23",  Z  "25",  and  Z  "27"  left  Bergen  northbound  on 
30  Nov..  U  "134T'  and  U  T,54"  have  left  Kiel  for  Kirkenes  to  be 
at  the  disposal  of  the  Commanding  Admiral,  Norway.  U  "131"  has 
been  detailed  as  a  third  ship  for  the  northern  area.   Otherwise 
nothing  to  report.   It  is  not  contemplated  to  establish  a  com- 
mand post  on  land  for  the  Admiral,  Arctic  Ocean.  Extension  of 
the  radio  stations  in  Hammerfest  and  Vardoe,  as  requested  by  the 
Commanding  Admiral,  Norway  is  unnecessary  since  submarine  escort 
TANGA  will  be  at  the  disposition  of  the  Admiral,  Arctic  Ocean  as 
long  as  the  Norwegian  area  retains  its  present  significance. 
After  capture  of  Murmansk  and  disruption  of  the  Russian  overland 
route  to  Archangel  the  existing  radio  stations  will  be  suffi- 
cient for  the  tasks  which  still  remain. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.   Enemy  Situation: 

Enemy  formation  of  five  vessels  sighted  in  squares 
3516  A0  and  3542  A0  on  southwest  course.  Finns  intend  to  at- 
tack with  surface  forces  and  submarines.  The  3rd  Motor  Mine- 
sweeper Flotilla  took  part  in  a  short  skirmish  south  of  Jus- 
saroe  without  noteworthy  results. 


-3-  9862 


BC.  1941  CONFIDENTIAL 

2.       ~  l:.:-~lDn: 

Lp  raids  on  the  Kiel  and  Sch'leswig-Holstein  area 
curing  the  night  of  J?  Nov.  resulted  in  negligible  military  and 

I  _al  damage.   Three  enemy  planes  were  shot  down  by  naval 
anti-aircraft  artillery.   See  Radiogram  23^5  for  details.   The 
steamer  TE.    TELS  from  convoy  proceeding  from  Oslo  to  Vasa  has 
been  damaged  by  collision  near  Anholt.   Troops  were  transferred 
casualties.   TRAUTE:~::L5,  which  is  temporarily  grounded 
in  shallow  water,  will  dock  in  Copenhagen  after  leak  has  been  re- 

_red.   The  office  of  Commander,  Convoy  Control  Station,  East 
was  deactivated  on  30  Nov..   Convoy  control  from  now  on  by  Com- 
mander, Mine sweeping  Flotillas,  North. 


V.   Merchant  Shipping: 

or  ship  RIO  GRANDE  received  orders  by  Radiogram  1135  to  pro- 
ceed to  Osaka  instead  of  to  Yokohama,  and  not  to  establish  land 
contact  until  Naval  Attache  has  boarded  shio. 


VI.   Submarine  Warfare 

1.  Enemy  Situation: 

Radio  monitoring  intercepted  enemy  message  from  Brit- 
b  vessel  at  2045  from  area  between  7.5°  and  22.5  E,  in  Mid- 
dle to  South  Atlantic.  American  steamers  received  orders  in 
the  night  of  30  Nov.  to  change  their  course  and  not  to  acknowl- 
edge radio  signals.  According  to  Italian  report,  convoy  SL 
92  was  located  approximately  250  miles  northeast  of  the  Azores 
on  northerly  course  on  22  Nov. 

A  British  plane  sighted  surfaced  submarine  off  Cape  Spartel  at 
2250.  British  troop  transport  RANDITATA  (16,737  3RT)  arrived 
at  Gibraltar  from  the  west  according  to  Spanish  report.  Approxi- 
mately 500  Army  and  Navy  personnel  were  seen  on  deck.  A  fairly 
large  tanker  as  well  as  a  transport  of  15,000  3RT,  which  appar- 
ently carried  troops,  passed  Gibraltar  in  the  afternoon  proceed- 
ing eastward.  According  to  Italian  report,  a  convoy  of  approxi- 
mately 25  steamers  is  due  to  leave  Gibraltar  within  a  short  time, 

2.  Own  Situation: 

No  contact  has  been  reestablished  with  the  convoy 
north  of  the  Azores.  For  further  reports  on  the  situation  see 
IP  Diary,  Part  B,  Vol.  IV. 

Commanding  Admiral,  Submarines  has  been  advised  by  Radiogram 
1212  that  "Gata"  supply  base  can  supply  only  three,  more  subma- 
rines and  cannot  be  used  Tor  this  purpose  before  the  night  of 
5  Dec.  because  of  the  full  moon. 


-k- 


9862 


1  Dec.  1941  CONFIDENTIAL 

VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

According  to  our  count,  tBe  enemy  lost  15  planes  in  the 
night  of  30  Nov..   Only  3  of  these  were  shot  down  by  the  Navy. 
British  news  service  reports  loss  of  19  planes.  Armed  reconnais- 
sance damaged  a  steamer  of  1,000  BRT  during  the  day  off  the  Shet- 
lands  and  in  the  evening  while  mining  the  Humber  estuary  sank  a 
ship  of  2,000  BRT  with  an  aerial  mine,  Type  B.  A  5,000  BRT  steam- 
er was  reported  damaged  by  an  armed  reconnaissance  plane  in  the 
Bristol  Channel. 

2.  Mediterranean  Theater; 

Attacks  on  convoy  of  8  steamers  escorted  by  6  destroy- 
ers off  Solium.  No  report  yet  on'  results.  According  to  reports 
received  so  far,  the  following  number  of  enemy  planes  were  de- 
stroyed in  the  African  theater  from  18  Nov.  to  30  Nov.^  75  en- 
emy planes  by  pursuit  planes,  7  by  long  range  fighters  and  2  by 
bomber  formations.  Total:   84  enemy  planes  destroyed.  Anti- 
aircraft artillery  shot  down  8  enemy  planes,  damaged  26  enemy 
tanks  and  destroyed  3  armored  scout  cars. 

Command  post  of  Field  Marshal  Kesselring  carries  the  designation 
of  "Commanding  General,  South".   Headquarters  in  Frascati  near 
Rome. 

3.  Eastern  Front: 

Little  action  on  all  fronts.  Nothing  noteworthy  ob- 
served in  air  reconnaissance  over  Sevastopol.   Otherwise  nothing 
to  report. 


VIII.  Warfare  in  the.  Mediterranean 

1.   Enemy  Situation: 

Western  Mediterranean: 

A  former  Dutch  submarine  arrived  28  Nov.  in  Gibraltar 
from  the  east  and  is  said  to  have  unloaded  26  prisoners. 

Central  and  Eastern  Mediterranean: 

From  Italian  radio  monitoring  it  is  learned  that  light 
British  naval  forces  operated  in  two  separate  groups  in  the  Cen- 
tral Mediterranean  on  30  Nov..  The  first  group,  consisting  of 
AURORA  and  PENELOPE,  most  likely  returned  to  Malta  in  the  after- 
noon.  The  second  group,  consisting  of  ARETHUSA  and  GALATHEA, 
probably  sank  the  transport  ADRIATICO  on  1  Dec.  at  0300.  During 
1  Dec,  several  British  cruiser  and  destroyer  groups  operated 
along  the  entire  North  African  coast  between  Tripoli  and  Marsa 
Matruh.  At  0955  air  reconnaissance  located  a  cruiser  and  three 


-5- 


9  86  2 


1  Dec.  1941  CONFIDENTIAL 

submarines  50  miles  north  of  Benghazi.  Benghazi  reported  mine- 
laying  off  the  harbor  by  enemy  naval  forces  at  1100.  At  1420 
one  of  these  vessels  asked  for  fighter  cover.   Three  cruisers 
were  66   miles  off  Tripoli  at  1830.  See  Radiogram  2115  for  fur- 
ther details. 

2.  Situation  Italy; 

Reports  about  Italian  naval  forces  scheduled  to  arrive 
at  Taranto  at  noon  1  Dec.  have  not  yet  been  received.  According 
to  radio  monitoring,  the  hospital  ship  RAMB  IV  ran  aground  60 
miles  off  Tobruk  but  was  able  to  get  off  with  damage  to  the  bow. 

3.  Transport  of  Supplies  to  North  Africa: 

The  Afrika  Korps  reports  by  radio  to  the  Armed  Forces 
High  Command  as  follows:   "The  local  impression  is  that  the 
British  fleet  operates  entirely  unhindered  off  the  Cyrenaica 
coast.  The  area  south  of  Tobruk  has  been  bombarded  from  the  sea 
repeatedly  with  shells  of  heavy  and  very  heavy  caliber.  British 
naval  and  supply  vessels  arrive  day  and  night  at  Tobruk  harbors. 
Information  is  requested  to  what  extent  the  Italian  fleet  is  be- 
ing used  to  combat  British  naval  forces  and  what  the  German  sub- 
marines are  doing  at  present.   In  the  opinion  of  the  Panzer  Group, 
the  latter  should  constantly  lie  in  wait  ready  for  action  off  To- 
bruk. The  most  important  and  worthwhile  targets  should  be  found 
there . " 

An  escort  torpedo  boat  took  aboard  111  survivors  from  steamer 
CAPO  FARO.   They  arrived  in  Argostoli  aboard  steamer  ISEO.   The 
tanker  MANTOVANI  was  damaged  by  aerial  torpedo  en  route  to  Trip- 
oli 30  Nov..   She  was  taken  in  tow  by  escort  torpedo  boat  and 
later  on  was  attacked  again  by  enemy  planes.  No  further  reports 
received.   The  auxiliary  vessel  ADRIATICO  was  sunk  on  1  Dec.  by 
enemy  naval  forces  north  of  Benghazi  (see  Enemy  Situation). 
Steamer  WACHTFELS  put  In  at  Messina  because  of  engine  trouble. 
Through  enemy  air  raids  on  Benghazi  between  28  Nov.  and  30  Nov., 
the  Italian  steamer  PRIARUGGIA,  two  tug  boats,  the  motor  tanker 
SPERAUCA  and  one  auxiliary  sailing  vessel  were  sunk.  From  2  Dec. 
to  5  Dec.  a  transport  submarine  carrying  gasoline  and  rations  is 
to  arrive  in  Bardia  every  evening.  According  to  report  from  the 
Commanding  Officer,  Supplies  and  Transports,  Italy,  the  following 
supplies  have  been  landed  for  the  Air  Force  in  Derna,  Benghazi 
and  Bardia  since  19  Nov.:   122  tons  of  fuel,  159  tons  of  ammuni- 
tion and  50  tons  of  materiel. 

4.  Area  Naval  Group  South: 
Aegean  Sea: 

Departure  of  BARLETTA  has  been  postponed  until  2  Dec. 
Black  Sea: 

Arrival  of  supply  transport  URLAUBST0ERN  which  left 
Burgas  30  Nov.  with  ZAR  FERDINAND  and  left  Constanta  on  1  Dec. 


9862 


1  Dec.  19^1  CONFIDENTIAL 

with  CARPATI  and  CARVANIA  and  Rumanian  escort.  Rumanian  destroy- 
er escort  returned  to  Constanta  because  of  heavy  seas. 

Repeated  unsuccessful  enemy  submarine  attacks  on  ZAR  FERDINAND; 
it  was  extraordinary  that  they  always  occurred  just  when  the 
course  was  changed. 


IX.  Army  Situation 

1.  Russian  Front; 

Southern  Army  Group; 

In  the  1st  Panzer  Army  sector  the  enemy  followed  the 
southern  flank  of  the  Army  front  which  had  been  withdrawn  dur- 
ing the  night,  and  at  daybreak  immediately  began  attacking  the 
rear  guard,  whereby  our  line  was  broken  through.  The  Tuzlov 
front  also  had  to  be  withdrawn  due  to  strong  enemy  pressure. 
It  is  planned  to  deploy  the  1st  Panzer  Army  along  the  line  Primo 
skoye  (10  km  east  of  Taganrog-Pokrovskoye,  which  is  22  km  north 
of  Taganrog )-Mius  for  a  prolonged  defense. 

Central  Army  Group; 

The  4th  Army,  along  with  the  2nd  Army  Corps,  has 
started  to  attack  toward  the  northeast  as  planned,  and  has 
gained  up  to  8  km.  Panzer  Group  4  has  gained  up  to  10  km  In 
continued  attack  to  the  east  and  southeast.  Panzer  Group  3 
reached  Khaborovo  after  a  slow  advance  to  the  south. 

Northern  Army  Group; 

In  spite  of  very  heavy  artillery  fire  the  enemy  at- 
tacked from  the  Neva  bridgehead;  attack  was  repulsed,  however. 
Enemy  is  withdrawing  forces  from  the  Leningrad  front  for  use 
south  of  Lake  Ladoga. 

2.  Finnish  and  Norwegian  Front; 
Nothing  to  report. 

J>.        North  Africa; 

In  continuing  the  fight  against  units  of  the  2nd  New 
Zealand  Division,  which  have  been  encircled  southeast  of  To- 
bruk,  Bel  Ramet  has  been  taken.  Diversionary  attacks  from 
the  west  were  successfully  repulsed.   Since  lo  Nov.,  840  armor- 
ed cars  and  scout  cars  have  been  destroyed  and  127  airplanes 
shot  down.  The  number  of  prisoners  exceeds  9,000;   among  them 
are  three  generals. 


************************* 


-J-  9862 


CONFIDENTIAL 
2  Dec.  19^1 

I:enis  of  Political  Importance 

France: 

Reichsmarschall  Goering,  Marshal  Petain  and  Darlan  met  1  Dec. 
near  Orleans.  Results  of  talks  have  not  been  announced  so  far. 

Croatia: 

According  to  a  report  from  a  diplomatic  source,  the  insurgent 
movement  in  Bosnia  is  still  in  full  swing.  Large  sections  of 
the  Catholic  and  Mohammedan  population  have  joined  the  insur- 
ger. 

• 

Turkey: 

According  to  reports  from  the  German  Embassy,  the  Turkish  Govern- 
ment considers  that  the  Russian  danger  has  passed.   The  Turkish 
Government  counts  on  being  requested  by  Germany  or  Great  Britain 
to  make  a  clear  decision,  but  it  does  not  believe  this  will  hap- 
pen before  next  spring.  Turkey  still  hopes  to  be  able  to  stay 
out  of  the  war  and  believes  this  possible  if  Germany  does  not 
undertake  operations  after  the  occupation  of  the  Caucasus  which 
would  endanger  Turkey's  independence.   On  the  other  hand,  Tur- 
key is  vitally  interested  in  the  continued  flow  of  material  from 
Great  Britain  and  America.  She  is  therefore  trying  to  avoid 
anything  which  might  create  the  impression  of  her  siding  com- 
pletely with  Germany. 

U.S.A. : 

The  Japanese  envoys  have  made  known  that  they  are  under  instruc- 
tions from  Tokyo  to  continue  negotiations.  To  jo's  announcement 
to  the  effect  that  Japan  will  oppose  with  all  her  power  Anglo- 
Saxon  predominance  in  East  Asia  has  caused  greatest  concern  in 
the  U.S..  Kurusu  and  Nomura  are  trying  to  soften  these  remarks. 
In  view  of  the  delay  shown  by  both  parties  at  the  talks,  concern 
has  arisen  in  U.S.  diplomatic  circles  that  the  Japanese  have 
only  the  intention  of  prolonging  the  conferences  in  order  to  as- 
semble meanwhile  enough  forces  for  a  southern  offensive. 

Argentina: 

Government  has  advised  that  prior  to  occupation  of  Dutch 
Guiana  by  the  U.S.  no  consultation  of  the  American  Republics 
took  place,  as  stipulated  in  the  Havana  resolutions.   The  Ar- 
gentine Government  approved  the  action  subsequently,  to  be 
sure,  but  Buenos  Aires  is  said  to  be  especially  upset  about 
the  fact  that  even  Brazil  gave  no  notice  of  the  impending  move. 

Brazil: 

No  Brazilian  troops  were  sen4  the  border  as  was  planned  in 
the  event  of  occupation  of  D     Guiana. 


_8-  9862 


2  Dec.  1941  CONFIDENTIAL 

Japan : 

According  to  Domei,  the  Japanese  Government  has  fully  recognized 
the  fundamental  differences  existing  betveen  the  Japanese  and  the 
U.S.  points  of  view.   However,  the  Japanese  Government  is  said  to 
have  resolved  to  continue  the  conferences  In  the  interest  of 
keeping  peace  In  the  Pacific  and  to  invite  the  U.S.A.  to  recon- 
sider their  attitude. 

Diplomatic  circles  report  that  the  mood  of  Japanese  Army  and 
Navy  contingents  stationed  in  Indo-China  is  predominantly  in 
favor  of  striking  soon.  Even  in  the  event  that  It  should  he 
possible  to  come  to  a  temporary  agreement  in  Washington,  it  is 
not  impossible  that  the  Japanese  High  Command  in  Indo-China  will 
independently  give  orders  to  advance  so  as  finally  to  wreck  ne- 
gotiations In  Washington. 

It  would  not  be  the  first  time  that  the  Japanese  Armed  Forces 
have  made  their  own  policy. 


Conference  ,on  the  Situation  with  the  Deputy  Commander  in  Chief, 
Navy. 

No  particular  reports  or  decisions. 


Special  Items; 

The  Armed  Forces  High  Command,  Operations  Staff,  National  Defense 
has  requested  the  High  Command,  Army  to  Investigate  possibilities 
for  later  employment  of  railway  artillery  against  Moscow  and  in- 
stallations around  Moscow,  such  as  airfields.  To  be  considered: 
whether  to  make  such  equipment  available  from  other  places,  pos- 
sibly also  from  the  Channel  coast,  for  the  duration  of  the  winter. 
The  Commander  In  Chief,  Navy  and  the  Chief,  Armed  Forces,  Trans- 
portation are  to  take  part  in  the  investigation.   (See  Radiogram 
1440.) 


Situation  2  Dec.  1941 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation: 

North  Atlantic: 

According  to  U.S.  Navy  Department  the  British  cruiser 
PHOEBE  is  lying  In  New  York  and  the  corvette  CLARKIA  in  Mobile 
for  repairs.  According  to  the  German  Legation  in  Panama,  a  ship 


-9- 


9862 


2  Dec.  19lU  CONFIDENTIAL 

will  be  leaving  New  York  within  the  next  few  days  bound  for  French 
Equatorial  Africa.   It  is  loaded  exclusively  with  American  engi- 
neers, technicians  and  experts  for  installing  airplane  bases.  Ac- 
cording to  the  Canadian  Foreign  Minister's  declaration  of  29  Nov., 
German  submarines  are  still  in  vicinity  of  Canadian  coast.  Accord- 
ing to  Associated  Press  report  of  30  Nov.,  the  First  Lord  of  the 
Admiralty  declared  that  in  the  evacuation  of  Dunkirk  10  British  de- 
stroyers were  sunk  and  75  were  so  heavily  damaged  that  they  were  out 
of  commission  for  a  long  time.  According  to  another  Associated 
Press  report,  two  British  submarines  have  sunk  eight  Axis  ships, 
loaded  with  troops  or  supplies,  in  Arctic  waters. 

South  Atlantic; 

U.S.  cruiser  MEMPHIS  and  destroyer  DAVIS  arrived  in. 
Pernambuco  1  Dec. 

Pacific  Ocean; 

18  submarines  and  96  planes  are  reported  in  Hawaii. 
According  to  British  broadcasts,  a  Japanese  force  of  about  16 
vessels,  among  them  cruisers  and  carriers,  is  on  a  southerly 
course  near  the  Japanese  mandated  Islands. 

2.   Own  Situation; 

U  "A"  and  U  "68"  reported  on  the  evening  of  1  Dec. 
that  PYTHON  was  sunk  in.  the  South  Atlantic  by  a  British  heavy 
cruiser.  All  members  of  the  crew,  including  those  of  ship  "16", 
have  been  rescued  and  are  being  towed  northward  by  the  two  sub- 
marines.  See  Submarine  Warfare  for  measures  taken  by  the  Naval 
Staff  for  the  shipwrecked. 

Reuter  reported  as  follows  about  the  sinking  of  ship  "16": 
"Just  before  dawn  on  22  Nov.  a  merchant  ship  lying  to  was  sight- 
ed in  the  South  Atlantic  by  an  airplane  from  the  DEVONSHIRE. 
DEVONSHIRE  approached  at  high  speed  and  dispatched  another  plane 
for  closer  observation.  The  plane  observed  a  number  of  oil 
drums  aboard  the  ship.   The  general  appearance  of  the  ship  was 
reminiscent  of  that  of  a  German  armed  raider.  Answer  to  signals 
from  DEVONSHIRE  was  not  satisfactory.   This  further  confirmed 
the  enemy  origin  of  the  suspicious  ship  and  consequently  fire 
was  opened.   The  enemy  ship  tried  to  hide  behind  a  smoke  screen 
but  It  was  burning  within  ten  minutes  and  the  crew  abandoned 
ship.   The  magazines  exploded  and  the  ship  sank.   The  presence 
of  a  submarine  was  suspected  and  confirmed.  Under  these  circum- 
stances it  was  impossible  to  take  aboard  survivors.  DEVONSHIRE 
suffered  neither  losses  nor  damage." 

Noteworthy  in  this  account  is  the  fact  that  the  auxiliary  cruiser 
was  first  sighted  by  a  plane,  which  testifies  to  the  systematic 
patrol  of  the  region.  From  that  one  could  conclude  that  the  en- 
counter was  not  so  accidental  as  had  previously  been  assumed. 
Another  thing  to  be  seen  from  the  report  is  that  the  presence  of 
a  submarine  in  the  vicinity  of  the  German  ship  was  suspected. 
This  too  might  Indicate  that  the  enemy  has  after  all  possession 
of  some  sort  of  authoritative  Information  about  our  measures. 
On  the  other  hand  It  is  possible  .that  these  two  suspicions  are- 


C 


-10- 


9862 


2  Dec.  1941  CONFIDENTIAL 

entirely  unfounded,  since  the  opponent  will  certainly  have  reck- 
oned vith  our  supplying  the  submarines  they  located  in  the  South 
Atlantic  "by  floating  bases  in  outlying  regions. 

Concerning  the  battle  between  ship  "4l"  and  SIDNEY,  Reuter  pub- 
lishes a  communique  of  the  Australian  Government  which  states 
that  SIDNEY  was  in  an  engagement  with  an  armed  enemy  auxiliary 
cruiser  which  was  sunk  by  gunfire.  There  was  "no  further  news 
from  SIDNEY  and  it  must  he  supposed  that  she  is  lost".  The  Aus- 
tralian Prime  Minister  has  announced  that  the  entire  crew  of  the 
SIDNEY,  42  officers  and  60J>   men,  are  missing.  According  to  a 
further  Reuter  report,  the  SIDNEY  was  sunk  hy  the  STEIERMARK. 
These  reports  confirm  the  assumption  that  the  sinking  of  the  SID- 
NEY is  connected  with  the  auxiliary  cruiser  ship  "4l   (see  War 
Diary  1  Dec).  As  far  as  can  be  determined  at  present,  the  aux- 
iliary cruiser  sold  her  life  dearly  and  crowned  the  unfortunate 
end  of  her  successful  career  with  a  last  success  which  is  espe- 
cially gratifying  and  valuable.  Since  reports  so  far  received 
indicate  that  several  of  the  crew  of  ship  "4l"  have  survived, 
we  may  count  on  further  news. 

Naval  Staff  orders  that  the  next  of  kin  of  the  crew  be  notified, 
in  order  to  let  them  know  about  loss  of  the  ship  in  an  appropri- 
ate way  "before  the  fact  is  published  or  "becomes  generally  known. 
At  the  same  time  immediate  inquiries  about  the  whereabouts  of 
survivors  will  be  instituted  with  the  Red  Cross. 


II.   Situation  Vest  Area 

1.  Enemy  Situation; 

Air  reconnaissance  reports  a  convoy  of  ten  ships  on 
northern  course  in  St.  George* s  Channel. 

2.  Own  Situation; 

Atlantic  Coast; 

No  sea  patrols  northwest  of  Spain  because  of  weather 
conditions . 

Channel  Coast; 

Mine  operation  of  4th  PT  Boat  Flotilla  executed  as 
planned.  1st  Motor  Minesweeper  Flotilla  had  a  short  engage- 
ment with  four  British  PT  boats  off  Kwinte  Bank.  Hits  on  the 
enemy  were  observed.  No  damage  to  our  ships.  Bombardment  of 
targets  located  off  Nieuport  by  Army  battery,  without  observa- 
tion of  results. 


III.  North  Sea,  Norway,  Arctic  Ocean 


-11-  9862 


2  Dec.  1941 


CONFIDENTIAL 


1.  North  Sea; 
Nothing  to  report. 

2.  Norway; 

Enemy  Situation; 

According  to  radio  monitoring,  bombardment  of  Vardoe 
on  25  Nov.  was  carried  out  by  the  British  cruiser  KENYA,  two 
British  destroyers,  and  two  Russian  destroyers. 

Own  Situation; 

The  8th  Destroyer  Flotilla  with  Z  "24"  and  Z  "26" 
awaits  arrival  in  Tromsoe  of  TANGA  with  Z  "25",  Z  "25",  and 
Z  "27"  in  order  to  proceed  north  together  with  them. 

The  8th  PT  Boat  Flotilla  with  LUEDERITZ  has  left  Aalesund  for 
the  north.  According  to  report  from  the  Commanding  General, 
Norwegian  Theater  the  two  21  cm  Army  coastal  batteries  in  Pet- 
samo  and  Kirkenes  will  be  equipped  with  only  two  guns  each. 
Since  this  is  entirely  insufficient  for  shelling  targets  at  sea, 
the  Commanding  Admiral,  Norway  has  urged  the  Naval  Staff  to  e- 
quip  them  with  at  least  three  guns  each  (see  Radiogram  1255). 
The  Naval  Staff,  Quartermaster  Division  receives  orders  to  set- 
tle the  matter.  % 


c 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea; 

Minelayer  "529"  was  sunk  by  a  mine  in  the  western  Kolberg  mine 
field. 

Group  North  reports  that  minesweeping  operations  north  of  Dagoe 
could  not  be  started  yet  due  to  weather  conditions  and  icing  of 
ships.  Steps  will  be  taken  to  substitute  larger  and  better 
adapted  vessels  for  the  small  motor  minesweepers  which  are  un- 
suitable because  their  spray  freezes  on  them.   (See  Radiogram 
1750.)  Finnish  reports  state  that  two  ships  from  the  convoy 
sighted  1  Dec.  have  been  sunk  by  coastal  artillery. 


< 


V.   Submarine  Warfare 

1.   Enemy  Situation; 

Radio  monitoring  reports  that  the  British  steamer 
MIGUEL  DE  LARRINAGA  (5,231  BRT)  was  chased  and  shelled  by  a 
submarine  200  miles  southwest  of  the  /.'.ores.  Airplanes  re- 
ported submarines  west  of  Cape  Sparte 

Acceding  to  Italian  reports,  additional  patrols  for  the  Strait 


-12- 


9862 


2  Dec.  1941  CONFIDENTIAL 


of  Gibraltar  consisting  of  two  destroyers  and  six  gunboats  are 
being  established  between  Cape  spartel  and  Cape  Trafalgar. 

2.   Own  Situation; 

Report  in  War  Diary,  Part  B,  Vol.  V. :  Commanding  Ad- 
miral, Submarines  receives  following  instructions  regarding  res- 
cue of  PYTHON  survivors  and  survivors  of  ship  "16". 

1.  The  following  alternatives  are  to  be  considered: 

a.  Transport  home  by  German  and  Italian  submarines  sent 
out  to  meet  them. 

b.  Towing  to  Angola  by  own  submarines. 

c.  Towing  to  St.  Helena. 

d.  Calling  neutral  or  enemy  ship  to  take  them  aboard. 

Decision  depends  entirely  upon  supply  situation.  Most  favorable 
solution  is  "a",  but  it  probably  cannot  be  achieved.  Then  "b" 
should  be  tried. 

2.  Rescue  of  survivors  must  under  no  circumstances  lead  to 
loss  of  submarine.  Therefore  in  any  case  only  so  many  survivors 
should  be  taken  aboard  as  can  be  handled  without  impairing  the 
submarine's  diving  ability. 

3.  Men  to  be  taken  aboard  submarine  for  return  to  Germany  will 
be  chosen  by  commanding  officer  of  ship  "16". 

4.  Initiate  procedures  immediately.  Make  suggestions.   (See 
Radiogram  2020. ) 

"Gata"  Supply  Base: 

Political  pressure  on  Spain  by  the  enemy  and  related  increasing 
difficulties  in  transporting  additional  fuel  supplies  force  us 
not  only  to  particular  caution  in  using  "Gata"  but  also  to  its 
limitation  to  the  most  urgent  cases.  Reports  show  that  the  en- 
emy suspects  that  we  are  supplying  our  submarines  from  south 
Spanish  harbors.  Our  current  operations  In  the  Gibraltar  area 
will  make  him  more  aiert.  Considering  this,  the  use  of  "Gata" 
is  dangerous  and  unfavorable  at  present.  There  is  a  particular- 
ly great  risk  that  it  could  be  completely  paralyzed. 

Along  with  information  about  this  situation,  the  Commanding  Ad- 
miral, Submarines  therefore  receives  directive  that  particular- 
ly Group  Steuben  is  to  try  to  get  along  without  "Gata"  supplies, 
possibly  using  "Bernardo"  in  emergency.  Premature  termination 
of  current  operation  of  this  group  must  be  reckoned  with. 

Refueling  of  submarines  proceeding  from  Baltic  Sea  in  western 
French  ports  is  deemed  advisable  by  Naval  Staff.  Use  of  "Gata" 
for  these  boats  will  thus  be  postponed  or  avoided  entirely. 


-13- 


9862 


2  Dec.  1941  CONFIDENTIAL 

See  Radiogram  1553  for  further  details. 


VI.   Aerial  .Warfare 

1.  British  Isles  and  Vicinity: 

Armed  reconnaissance  of  5th  Air  Force  reported  severe 
damage  to  steamer  (3,000  BRT)  near  Suderoe  (Faroe  Islands). 
Otherwise  nothing  to  report.   Night  action  against  ship  targets 
met  with  no  success. 

2.  Mediterranean  Theater; 

Because  of  existing  conditions  at  sea,  the  Armed  Forces 
High  Command,  Operations  Staff,  National  Defense  has  ordered  that 
the  most  important  reinforcements  for  North  Africa  be  transported 
in  the  main  by  air  rather  than  by  water.   The  Commanding  General, 
Armed  Forces,  South  received  directions  to  support  the  battle  in         ( 
Cyrenaica  by  active  combat  and  by  air  transports  until  the  bulk  of 
the  scheduled  planes  arrives,  to  combat  enemy  shipping  in  the  cen- 
tral Mediterranean  and  the  enemy  supply  lines  to  Tobruk,  to  pro- 
vide for  the  security  of  our  own  convoys,  and  to  keep  the  British 
Air  Force  grounded  at  Malta.  After  arrival  of  units  assigned  to 
him,  the  main  task  of  the  Commanding  General,  Armed  Forces,  South 
will  be  a  continuous  attack  on  Malta  and  its  supply  routes,  with 
the  aim  of  eliminating  this  British  sea  and  air  base. 

3.  Eastern  Front: 

Operations  by  strong  bomber  and  divebomber  units  in 
Rostov  area.   Nuisance  raids  on  Moscow  and  Leningrad. 


VII.  Warfare  in  the  Mediterranean 

1.   Enemy  Situation:  , 

Western  Mediterranean: 

According  to  unconfirmed  Italian  reports,  a  large  con- 
voy passed  Gibraltar  the  morning  of  29  Nov.  with  an  easterly 
course.   This  might  have  bt*en  the  announced  convoy  from  the- U.S. 

Central  and  Eastern  Mediterranean: 

From  reports  of  German  and  Italian  air  reconnaissance 
and  from  radio  monitoring  the  following  can  be  determined:  A 
convoy  of  eight  steamers  and  six  destroyers  was  located  in  the 
Bay  of  Solium  the  evening  of  1  Dec,  and  3  hours  later  it  was 
northeast  of  Tobruk.   It  may  be  assumed  that  it  arrived  in  To- 
bruk during  the  night.  According  to  a  submarine  report,  five 


_l4_  9862 


2  Dec.  19^1  CONFIDENTIAL 

cruisers  and  tvo  destroyers  arrived  in  Tobruk  on  2  Dec.  at  0417. 
These  same  units  were  again  off  Tobruk  at  0900  on  a  northerly- 
course.  A  steamer  and  two  destroyers  moved  eastward  in  the  same 
area.   One  hour  later  there  were  reports  from  a  unit  northeast 
of  Solium  with  designation  "Local",  and  another  unit  with  desig- 
nation "Nobad"  west  of  Benghazi  that  they  were  under  a  bomb  at- 
tack by  enemy  aircraft.   In  the  eastern  Mediterranean  heavy  bat- 
tle forces  were  ^5  miles-  north  of  Alexandria  at  about  1100.  At 
approximately  the  same  time  two  cruisers  and  three  destroyers 
were  in  this  area  heading  for  Alexandria,  while  100  miles  west 
of  that  port  there  were  four  merchantmen  and  east  of  them  one 
destroyer  on  west  course.  These  various  reports  point  out  the 
scope  and  speed  of  the  supply  traffic  and  its  escorts  between 
Tobruk  and  Alexandria.  According  to  reports  of  1  Dec.  from  an 
Italian  agent,  a  damaged  heavy  British  cruiser  has  arrived  in 
Alexandria.   The  date  is  unfortunately  missing.  Besides  that, 
more  submarines  are  said  to  have  arrived  in  Malta.  Extensive 
air  and  sea  operations  are  said  to  be  planned  against  our  own 
supply  traffic  by  way  of  Salonika  to  Libya,  and  against  our  air 
reinforcements  by  way  of  Crete. 

Beginning  at  1115,  &  British  plane  tracked  two  Italian  destroy- 
ers 25  miles  west  of  Crete.  According  to  a  deciphered  radio 
message  of  British  Admiralty,  the  Dutch  submarine  0  "21"  sank 
two  schooners  off  the  Italian  coast  by  gunfire  and  ramming  on 
a  recent  date.   (Cf.  War  Diary  1  Dec,  Enemy  Situation,  Western 
Mediterranean. ) 

2.  Situation  Italy: 

Air  raids  on  Benghazi  and  Derna  during  the  night  of  1 
Dec;   no  report  of  damage  was  received.  A  belated  report  tells 
of  successful  attack 'on  British  force  off  Tobruk  by  Italian 
torpedo  planes.   One  destroyer  of  AURORA  class  was  sunk  in  this 
attack. 

3.  Transport  of  Supplies  to  North  Africa: 

Naval  Staff  takes  the  following  position  to  the  esti- 
mate of  the  situation  of  the  German  Panzer  Group,  Africa  as 
given  by  the  Naval  Liaison  Officer  to  the  Army  High  Command  (see 
War  Diary  1  Dec . ) : 

A.   a.   Naval  Staff  of  same  opinion  regarding  operations  of 
British  naval  forces. 

b.   Italian  Fleet  incapable  of  prevailing  over  even  an 
outnumbered  opponent  or  of  gaining  temporary  control  of  the 
seas.  Employment  of  light  Italian  forces  for  transport  of 
supplies  is  strongly  urged  here. 

c   German  submarines,  in  recognition  of  the  significance 
of  the  fight  in  North  Africa,  will  do  their  best  in  the  face  of 
severe  handicaps.  Their  main  area  of  operations  is  In  accord 
with  the  suggestion  of  the  German  Afrika  Korps.   Planned  maxi- 
mum number  of  boats  In  eastern  Mediterranean  not  yet  reached 
for  technical  reasons. 


-15- 


9862 


2  Dec.  1941  CONFIDENTIAL 

B.   Transmission  to  German  Afrika  Korps  left  to  discretion.   To 
this  the  Navy  Liaison  Officer  reports  to  the  Army  High  Command: 
The  German  General  at  Headquarters,  Italian  Armed  Forces  has  al- 
ready answered  radiogram  from  German  Afrika  Korps  today  as  fol- 
lows : 

a.  All  available  German  submarines  in  the  eastern  Mediter- 
ranean are  operating  along  the  Cyrenaican  coast  and  farther  east. 
Reinforcements  are  being  brought  up  at  an  accelerated  tempo. 

b.  Italian  surface  forces  are  being  employed  as  far  as 
possible  for  ferrying  supplies  and  as  transport  escorts. 

Therefore  do  not  pass  on  telegram  received  from  there. 

In  view  of  the  tense  situation  at  sea,  the  Armed  Forces  High  Com- 
mand has  again  intervened  and  designates  by  the  following  di- 
rectives air  transport  as  the  main  carrier  across  the  Mediterranean. 

The  situation  in  North  Africa  demands  utmost  efforts  to  supply 
units  of  the  German  Armed  Forces  fighting  there,  to  replenish  the 
considerable  losses  and  to  bring  up  first  rate  reinforcements. 
With  the  present  situation  at  sea,  air  traffic  Is  the  main  car- 
rier across  the  Mediterranean. 

Compilation  of  requirements  for  all  branches  of  the  Armed  Forces 
and  allocation  of  priorities  is  the  task  of  the  German  General, 
Headquarters,  Italian  Armed  Forces,  Rome.   He  will  order  from 
Germany  according  to  transportation  facilities.   The  High  Com- 
mands will  report  to  him  what  is  available  for  shipment.   (Copy 
to  Supply  and  Transportation  Office  of  the  Armed  Forces  Overseas, 
and  Armed  Forces  High  Command,  Operations  Staff,  National  Defense.) 

The  following  holds  for  processing  these  transports: 

1.  Transports  from  Germany  to  Italy  will  be  processed  by  central 
Supply  and  Transportation  Office  of  the  Armed  Forces  Overseas, 
rail  transportation  in  collaboration  with  Chief,  Armed  Forces, 
Transportation,  and  air  transportation  (In  exceptional  cases)  in 
collaboration  with  Headquarters,  Commander  in  Chief,  Air. 

2.  Transports  from  Italy  to  North  Africa  will  be  processed  cen- 
trally by  German  General  at  Headquarters,  Italian  Armed  Forces, 
Rome.   He  makes  allocations,  in  collaboration  with  2nd  Air  Force, 
to  either  air  or  water  transport. 

5.   Execution  of  air  transports  to  North  Africa  is  task  of  Com- 
mander in  Chief,  Air  (2nd  Air  Force)  who  collaborates  on  trans- 
ports from  the  Balkan  area  with  the  Commanding  General,  Armed 
Forces,  Balkans. 

(See  Radiogram  Armed  Forces  High  Command,  Operations  Staff,  Na- 
tional Defense,  Quartermaster  Supplies  Division,  OKW/WFST./L. 
I  op  H  Qu.  002890/^1  Gkdos.  in  War  Diary,  Part  C,  Vol.  XIV.) 

While  on  transport  duty,  the  Italian  destroyer  DA  MOSTO  and  tank- 


-16- 


9862 


2  Dec.  19^1  CONFIDENTIAL 

er  MONTEVANI  were  sunk  by  enemy  naval  forces  on  1  Dec.  65  miles 
northwest  of  Tripoli.   (See  War  Diary  1  Dec.)  Because  of  dam- 
age sustained  from  depth  charge,  transport  submarine  MITTA  was 
forced  to  cut  short  her  voyage  from  Benghazi  to  Derna  on  2  Dec. 
and  to  return  directly  to  Italy.   It  was  possible  to  salvage 
392  barrels  of  gasoline  from  the  tanker  BERBERA.   Three  cruisers, 
two  destroyers  and  three  steamers  are  being  loaded  in  Taranto. 
Transfer  of  Special  Command  289  from  the  Aegean  Sea  has  been 
postponed. 

4.  Area  Naval  Group  South; 
Aegean  Sea: 

Nothing  to  report. 

Black  Seat 

Enemy  Situation: 

According  to  Italian  report,  a  Russian  destroyer  has 
been  sunk  by  a  floating  mine  in  the  Black  Sea. 

Own  Situation: 

Nothing  to  report. 

5.  Situation  Turkey: 

Besides  giving  fantastic  rumors  about  Germany,  decoded 
radio  reports  from  British  Communication  Officer  in  Istanbul  of 
13  and  22  Nov.  tell  about  our  intention  to  intensify  air  attacks 
on  Egyptian  bases,  about  air  transports  as  compensation  for  in- 
creased shipping  difficulties  (unfortunately  connection  not  clear ) , 
and  about  equipping  Russian  vessels  when  they  pass  by  Istanbul 
with  demolition  charges  to  prevent  capture  by  the  enemy.   (Cf . 
Radio  Intelligence  Reports  1^55  and  1655.)  Another  deciphered 
radio  report  of  a  naval  attache  from  Ankara  to  the  Admiralty  con- 
tains particulars  about  British-Turkish  cooperation  in  military 
matters  and  has  been  made  available  to  the  Foreign  Office  by  the 
Naval  Staff. 


VIII.  Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

No  change  in  the  Crimean  situation.  Movements  of  1st 
Panzer  Army  for  drawing  back  its  front  effected  as  planned.  En- 
emy follows  with  strong  forces. 

Enemy  attacks  on  the  17th  and  6th  Army  sectors  have  been  repulsed. 


-17- 


9862 


2  Dec.  1941  CONFIDENTIAL 

Central  Army  Group; 

2nd  Army  on  the  advance.  3rd  Panzer  Division  broke 
through  enemy  position  east  of  Tula.   Operations  of  4th  Army  to 
complete  encircling  front  were  continued  and  therefore  only 
small  territorial  gains  were  made  in  the  south.   At  the  9th  Army 
sector  Panzer  Group  3  encountered  fairly  strong  resistance  in 
its  attacks  at  Dmitrov.  At  Kalinin  ve  sustained  considerable 
losses  through  enemy  air  attacks. 

Northern  Army  Group: 

Attack  near  Tikhvin  repulsed. 

2.  Finnish  and  Norwegian  Front: 

Enemy  measures  to  evacuate  Hangoe  are  continuing.  At 
the  Karelian  Army  sector,  attack  of  VII  and  II  Army  Corps  against 
Medvezhya  Gora  has  gained  further  ground.  Artillery  engagement 
between  Finnish  coast  artillery  and  enemy  convoy  escort  southeast 
of  the  Koivisto  islands. 

3.  North  Africa: 

A  good  part  of  the  2nd  New  Zealand  Division  was  taken 
prisoner  southeast  of  Tobruk.   The  rest  retreated  behind  the 
Trigh  el  Abd.  Air  reconnaissance  impossible  because  of  bad 
weather.   No  change  in  Solium  and  Bardia  front. 


*♦*♦*•**♦****♦***#*******# 


-18- 


9862 


• 


CONFIDENTIAL 

3  Dec.  19^1 

Items  of  Political  Importance 

Denmark ; 

The  Danish  Minister  at  London,  Count  Reventlow,  made  known  to 
his  Foreign  Office  that  he  can  no  longer  accept  its  directives, 
since  Denmark's  joining  the  Anti- Comintern  Pact  has  jeopardized 
the  traditional  Anglo-Danish  relations. 

Great  Britain; 

In  a  speech  to  the  House  of  Commons  on  2  Dec.  Churchill  demanded 
sweeping  expansion  of  the  use  of  manpower  in  the  British  war  e- 
conomy.  Drafting  of  women  should  be  included  in  these  measures. 
For  details  see  Political  Review  No.  284,  Paragraph  2. 

Italy; 

From  remarks  made  by  Italian  officers  at  Huntzinger's  funeral, 
German  participants  concluded  that  a  definite  change  in  Italy's 
attitude  regarding  collaboration  with  France  can  be  seen.  The 
Italo-French  questions  should  be  cleared  up  and  Italian  terri- 
torial claims  discussed,  Ciano  is  to  contact  the  German  Govern- 
ment in  this  matter. 

Rumania; 

The  British  Government  has  presented  Hungary  and  Rumania  with 
the  same  ultimatum  as  that  which  Finland  received. 

U.S.A. : 

Welles,  upon  express  request  by  Roosevelt,  has  asked  an  explana- 
tion from  the  Japanese  representatives  regarding  the  reinforce- 
ment of  Japanese  forces  in  Indo-China.  No  time  limit  is  said  to 
have  been  set  for  answering  this  question,  however. 

Japan ; 

The  Japanese  Government  and  Armed  Forces  are  still  studying  the 
U.S.  note  of  26  Nov..  Special  difficulties  are  said  to  be 
caused  by  the  fact  that  the  note  contains  to  a  large  extent  the 
uncompromising  demands  of  Chiang  Kai  Chek.   Japan  would  regard 
the  announced  U.S.  air  control  of  the  Burma  Road  as  armed  prov- 
ocation. A  situation  similar  to  the  one  confronting  the  Axis 
Powers  in  the  Atlantic  defense  zone  would  be  created. 


Situation  3  Dec.  1941 
I.   War  in  Foreign  Waters 
1.   Enemy  Situation; 


-19-  9862 


3  Dec.  1941  CONFIDENTIAL 

North  Atlantic; 

According  to  Spanish  reports,  transfer  of  the  French 
Fleet  from  Dakar  to  the  Mediterranean  is  expected  at  Gibraltar 
as  result  of  the  meeting  between  Goering  and  Pet a in. 

South  Atlantic : 

According  to  a  decoded  radio  message,  the  Commander  in 
Chief,  South  Atlantic  has  reported  radio  fix  on  a  submarine  about 
^o  u  ilfo  w  on  17  Nov..  DRAGON  and  DUNEDIN  stood  northwest  of 
Eathurst  on  15  Nov..  Auxiliary  cruiser  CANTON  stood  north  of  St. 
Paul's  Rocks  on  northwest  course  from  21  to  24  Nov..  Auxiliary 
cruiser  ALCANTARA  left  Capetown  on  16  Nov.  and  was  located  in  the 
La  Plata  area  on  about  26  Nov. 

Indian  Ocean: 

According  to  a  decoded  radio  message,  convoy  WS  12  J, 
part  of  the  convoy  WS  12,  which  was  escorted  across  the  Atlan- 
tic by  PRINCE  OF  WALES,  was  reported  to  be  12  miles  south  of  the 
Gulf  of  Bengal  on  26  Nov..   The  GLASGOW  was  also  there  at  the 
time.  According  to  newspaper  reports,  a  British  naval  force,  in- 
cluding several  heavy  units,  has  arrived  in  Singapore.  The  new 
Commander  in  Chief  of  the  British  Far  Eastern  Fleet,  Sir  Tom 
Phillips,  has  placed  his  flag  on  the  PRINCE  OF  WALES.  A  zone 
closed  to  navigation  has  been  designated  south  of  the  Johore 
coast  and  east  of  Singapore. 

Pacific  Ocean; 

The  British  Admiralty  has  ordered  cessation  of  Brit- 
ish merchant  shipping  in  the  China  Sea,  according  to  news  re- 
ports .  According  to  radio  monitoring,  the  Siamese  Naval  Attache 
has  Informed  the  British  Naval  Attache  in  Tokyo  that  one  Japa- 
nese battleship  of  45,000  tons  with  nine  40.6  cm  guns  is  being 
commissioned,  and  that  a  second  one  of  this  class  will  be  ready 
by  the  end  of  the  year.  Besides  this,  the  Siamese  assumes  that 
construction  of  two  heavy  cruisers  will  begin  by  spring  1942. 

2.   Own  Situation: 

Reuter  reports  to  the  sinking  of  SIDNEY  and  ship 
"41"  that  the  German  ship  STEIERMARK  has  been  known  for  some 
time  as  the  pirate  ship  41",  and  it  sailed  under  the  name  of 
C0RM0RAN.  Furthermore,  data  on  the  sinking  of  this  auxiliary 
cruiser  are  announced.  Two  lifeboats  with  survivors  of  the 
C0RM0RAN  have  reached  the  city  of  Carnarvon  in  western  Australia. 
The  survivors  declared  that  their  ship  scored  immediate,  success- 
ful hits  on  the  SIDNEY.  However,  the  sinking  cruiser  returned 
fire  and  was  able  to  set  the  C0RM0RAN  afire.  A  number  of  survi- 
vors from  several  lifeboats  were  taken  aboard  fishing  craft  and 
scout  planes.   The  Commanding  Officer  of  the  C0RM0RAN  was  res- 
cued by  an  Australian  ship.  320  men  were  rescued  from  the  C0R- 
M0RAN  according  to  latest  reports. 

It  is  the  opinion  of  an  American  observer  that  the  cruiser  SID- 


-20- 


3  Dec.  19*U  CONFIDENTIAL 

NEY  vas  sunk  by  a  heavy  cruiser  ( "Taschenkreuzer ")  vhich  accom- 
panied the  STEIERMARK  on  some  of  her  raids.  He  thinks  it  doubt- 
ful that  the  STEIERMARK,  with  a  speed  of  18  knots,  could  be  vic- 
torious over  the  SIDNEY  with  a  speed  of  33  knots. 

Since  the  complement  of  ship  "41"  amounted  to  about  400  men,  the 
high  number  of  men  rescued  is  most  gratifying.   It  is  not  yet 
possible  to  form  a  clear  picture  of  the  action  from  reports  now 
on  hand.  The  circumstance  that  in  all  probability  there  are  no 
survivors  of  the  SIDNEY  leads  one  to  suppose  that  the  cruiser 
went  down  suddenly  as  the  result  of  an  explosion  or  that  she  cap- 
sized immediately. 

Radiogram  0543  gives  locations  of  Swedish  ships  as  of  28  Nov.  as 
well  as  movements  of  American  merchantmen. 


II.  Situation  Vest  Area 


1.   Enemy  Situation: 


At  2016  radio  monitoring  intercepted  continuous  loca- 
tion reports  to  British  PT  boats  on  movements  of  one  of  our  con- 
voys. Permission  to  fire  was  given  to  one  of  these  PT  boat 
units. 

British  PT  boat  "54"  was  stranded  in  the  Portland  «rea  at  noon. 

2.   Own  Situation; 

Atlantic  Coast: 

Fourteen  Mark  XIV  mines,  with  little  growth  on  them, 
were  removed  in  the  La.  Rochelle  area  by  the  54th  Minesweeper 
Flotilla. 

Channel  Coast; 

Mine-exploding  vessel  "168"  sank  two  vessels  and  dam- 
aged another  two  in  an  engagement  with  enemy  PT  boats  off  Cape 
Gris  Nez.  Patrol  vessel  1809"  sank  one  large  PT  boat,  and 
another  one  was  badly  damaged  by  patrol  vessel  "1813".   Our  own 
units  arrived  in  Boulogne  as  planned.  We  have  to  wait  for  de- 
tails about  this  new  and  gratifying  success  of  the  defense  forces. 

According  to  a  report  by  Commander,  Torpedo  Boats,  radio  monitor- 
ing seems  to  have  confirmed  success  of  the  C  mines  laid  at  buoy 
"54"  by  the  4th  PT  Flotilla.  Busy  minesweeping  could  be  observed 
along  this  part,  of  the  convoy  route  during  2  Dec.  Removal  of 
four  acoustic  mines  has  been  reported  as  a  result  of  this  activ- 
ity, so  that  we  can  be  sure, that  the  opponent  is  able  to  sweep  our 
aerial  mine  Type  B  with  Fab  XI.   (See  Radiogram  1505.) 


-21- 


9862 


3  Dec.  19*U  CONFIDENTIAL 

III.  Situation  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 
Nothing  to  report. 

2.  Norway : 

Enemy  Situation: 

According  to  a  new  survey  of  the  Finnish  Hydrographic 
Office,  transmitted  by  the  Army  High  Command,  Norway  through  the 
Armed  Forces  High  Command,  shipping  in  the  White  Sea  needs  as- 
sistance of  icebreakers  beginning  the  middle  of  December.  Usu- 
ally it  is  possible  to  keep  this  sea  route  open  throughout  Janu- 
ary by  using  medium-sized  icebreakers.  Peacetime  experience  has 
shown  that  all  shipping  is  impossible  during  February,  March, 
and  the  beginning  of  April.  Starting  the  middle  of  April,  ship- 
ping may  be  possible  with  the  aid  of  heavy  icebreakers.   In  May 
the  ice  disappears  from  the  middle  of  the  White  Sea.  However, 
drift  ice  may  still  be  heavy  enough  with  south  and  northeast 
winds  to  interrupt  shipping  and  even  to  stop  heavy  icebreakers. 
Report  to  Group  North,  Admiral  Arctic  Ocean,  Commanding  Admiral, 
Norway  by  Radiogram  1933. 

Own  Situation; 

Two  torpedo  misses  on  convoy  north  of  Hammer f est  at 
1230.  Surfaced  enemy  submarine  was  pursued  by  submarine  chasers. 
Submarine  chaser  UJ  1708"  was  sunk  by  a  torpedo  during  the 
chase,  which  apparently  came  from  a  second  enemy  submarine.   Hits 
of  our  own  on  the  pursued  submarine  are  assumed  although  clear 
observation  was  not  possible. 

The  steamer  NORDLICHT,  loaded  with  Christmas  gifts  for  the  troops 
in  northern  Norway,  was  attacked  by  an  enemy  plane  near  Feistein 
and  received  a  bomb  hit.  The  ship  reached  Stavanger  under  her 
own  power  and  is  being  kept  afloat  by  pump  steamers.  No  loss  of 
personnel. 

Two  fishing  cutters  were  shelled  by  an  undetermined  enemy  east 
of  Vadsoe  and  one  of  them  set  afire.  Entrance  to  Kvaenangen 
Fjord  has  been  closed  because  of  mine  danger. 

Submarines  u  "45V,  U  "13V,  and  U  "130"  left  Kris tiansand- South 
northbound.  The  15th  Minesweeper  Flotilla  is  at  Bergen,  and  de- 
stroyers Z  "23",  Z  "25"  and  Z  1l27"  arrived  at  Trondheim.  De- 
parture of  the  submarine  U  "584"  from  Bergen  was  postponed  for* 
ten  days  because  the  Commanding  Officer  is  sick. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 
1.   Enemy  Situation; 

According  to  radio  monitoring,  submarine  S  "9"  received 


22- 


9862 


3  Dec.  19^1  CONFIDENTIAL 

orders  to  put  into  Hogland.  A  Finnish  report  states  that  a  group 
of  six  vessels  was  shelled  by  Finnish  heavy  artillery  in  quadrant 
3526  AO.  A  second  group  of  three  ships  was  located  in  quadrant  3525 
AO  on  an  easterly  course.  A  transport,  most  likely  the  MOLOTOV, 
struck  a  mine  in  the  Korbetha  field.  About  fifty  detonations  were 
observed  on  Odensholm  during  the  night  of  2  Dec,  apparently  caused 
by  destroying  ammunition  and  blasting  the  lighthouse;   it  can  be 
assumed  that  Odensholm  is  being  evacuated.  An  800  ton  Russian 
freighter  was  sunk  southeast  of  Kallbaadagrund  by  artillery  fire. 

2.   Own  Situation: 

The  Russian  transport  STALIN  (12,000  BRT)  was  driven 
aground  off  the  west  point  of  Reval  Bay.  Her  bow  was  severely 
damaged.   Officers  and  women  were  taken  aboard  patrol  boats  "313" 
and  314".  The  steamer  was  boarded  by  Naval  .Irtillery  Unit  636. 
According  to  first  reports,  6,000  soldiers  of  all  ranks  from 
Hangoe  were  aboard.   The  ship  supposedly  received  three  mine  hits. 

Hangoe  and  Russaroe  have  been  occupied  by  the  Finns. 

Substitute  convoy  from  Stettin  to  Vasa,  consisting  of  three 
steamers  with  2,228  men  and  235  vehicles,  departed  on  2  Dec. 
Nothing  to  report  from  the  western  Baltic  and  the  Baltic  Sea  en- 
trances. 


V.   Submarine  Warfare 

1.  Enemy  Situation; 

A  British  cruiser  patrolled  the  Denmark  Strait  on  30 
Nov..   On  3  Dec  radio  monitoring  located  one  British  vessel  a- 
bout  250  miles  southwest  of  Rockall  Bank  and  another  one  400 
miles  west  of  Vigo.  Names  and  locations,  probably  reference 
points,  were  intercepted  from  Newfoundland.  According  to  Italian 
reports,  the  vicinity  of  the  coast  of  Iceland  is  being  patrolled 
by  naval  vessels  to  assist  the  trawlers  there.  A  northern  (White 
Patrol)  and  a  southern  (Black  Patrol)  zone  have  been  established. 
The  center  line  of  the  Black  Patrol  runs  from  about  63°  30'  North 
150  15'  West  on  2500.  According  to  another  Italian  report,  steps 
were  taken  on  24  Nov.  to  accelerate  sending  more  British  subma- 
rines from  home  to  the  Mediterranean.  UP  35"  is  supposed  to 
leave  the  Rosyth  area  on  6  Dec.  Another  U-boat  from  the  Orkney 
area  should  arrive  in  Gibraltar  on  12  Dec.   In  the  Strait  of 
Gibraltar  during  2  Dec.  there  was  heavy  traffic  of  destroyers 
and  gunboats  on  patrol  under  air  cover.  According  to  a  Spanish 
report,  the  cable  ship  MIRROR  has  been  installing  sound  detect- 
ing equipment  at  Punta  de  Europa  since  29  Nov. 

2.  Own  Situation: 

Our  own  submarines  have  confirmed  the  heavy  patrolling 
of  the  Strait  of  Gibraltar.  U-boats  operating  in  the  South  re- 
port sinking  of  the  American  steamer  SAGADAHOC  (6,275  BRT)  which 
was  en  route  from  New  York  to  Durban  with  lights  dimmed  and  with- 


-23- 


9862 


3  Dec.  19^1  CONFIDENTIAL 

out  proper  markings.  Comma  riding  Admiral,  Submarines  reports  that 
•  submarines  U  "124*  and  U  "129"  nave  been  sent  to  meet  U  "A"  in  or- 
der to  rescue  the  crevs  of  the  PYTHON  and  ship  "16".   They  are  to 
take  the  survivors  aboard  and  return  home  as  fast  as  possible. 
The  submarines  must  be  able  to  submerge  at  any  time.  Plans  have 
been  made  to  send  additional  (Italian)  submarines  to  assist  in 
rescue  operations.  Three  submarines  located  in  the  operational 
area  and  three  scheduled  to  put  to  sea  on  8  Dec.  are  being  con- 
sidered. 

For  further  reports  on  the  situation  see  War  Diary,  Part  B,  Vol. 
IV. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 
Nothing  to  report. 

2.  Mediterranean  Theater; 

An  enemy  cruiser  of  the  AURORA,  class,  which  was  sunk 
on  1  Dec,  received  almost  simultaneous  hits  from  three  Italian 
torpedo  planes  and  sank  within  2  minutes. 

3.  Eastern  Front; 
Nothing  to  report. 


VII.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation; 

Western  Mediterranean; 

According  to  Reuter,  the  Australian  Prime  Minister  has 
announced  the  sinking  of  the  destroyer  PARRAMATA  (1,060  tons)  L 

which  had  been  serving  as  convoy  escort.  l4l  officers  and  men 
are  missing.  The  destroyer  had  last  been  identified  in  the  Medi- 
terranean during  May  19*11. 

Central  and  Eastern  Mediterranean; 

Activity  by  the  Mediterranean  Fleet  and  radio  traffic  in 
the  eastern  Mediterranean  was  lighter  than  in  previous  days. 
A  convoy  moving  toward  Tobruk  and  light  defense  units  were  re- 
ported off  the  Marmarica  coast  by  German  and  Italian  air  recon- 
naissance. A  submarine  was  sighted  north  of  Benghazi. 

2.  Situation  Italy; 
Nothing  to  report. 


-24-  9862 


3  Dec.  19^1  CONFIDENTIAL 

3.  Transport  of  Supplies  to  North  Africa: 

The  scheduled  reinforcement  movements  have  been  exe- 
cuted without  Interference.  Report  about  the  49th  and  50th 
Squadrons  leaving  Tripoli  not  yet  received. 

4.  Area  Naval  Group  South: 
Aegean  Sea: 

Enemy  Situation: 

Air  reconnaissance  sighted  an  unidentified  freighter 
in  Turkish  territorial  waters  at  the  outlet  of  the  Dardanelles. 
She  flew  a  red  flag;  no  crescent  moon  could  be  discerned.  I- 
talian  PT  boats  attacked  an  icebreaker  at  Castelrosso.   She  flew 
a  faded  Turkish  flag  and  had  a  faint  Turkish  emblem  on  her  gun- 
wale. 

Own  Situation: 

The  auxiliary  naval  vessel  BARLETTA  and  three  PT  boats 
have  postponed  departure  again  because  of  weather  conditions. 

Black  Sea: 

Enemy  Situation: 

According  to  an  Italian  report  from  a  reliable  source, 
the  Russian  steamer  SAKHALIN  and  icebreaker  NIK0LI0N  left  the 
Bosporus  the  afternoon  of  2  Dec.  in  the  direction  of  the  .Aegean 
Sea. 

Own  Situation: 

During  the  afternoon  of  2  Dec.  underwater  detonations 
sank  the  steamers  CAVARNA  and  CORDELIA  from  the  supply  convoy 
Urlaubstoern  7  miles  south  of  Burgas.  The  steamer  ZAR  FERDINAND 
turned  back  and  arrived  at  Sulina.  The  steamer  CARPATI  continued 
her  voyage  and  arrived  at  Ochakov  North.  Communications  were 
disrupted  before  more  information  could  be  obtained. 


VIII.  Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

The  situation  in  the  Crimea  remains  unchanged.  The 
enemy  advanced  cautiously  toward  positions  of  the  1st  Panzer 
Army  which  had  been  withdrawn,  and  attacked  on  several  sectors 
with  tank  and  plane  support.  The  attacks  were  repulsed.  At  the 
17th  and  6th  Army  sectors  enemy  attacks  on  several  positions  al- 
so were  repulsed. 


-25- 

9662 


5  Dec.  19^1  CONFIDENTIAL 

Ceatral  Army  Group: 

Operations  of  the  2nd  Army  and  2nd  Panzer  Army  are  con- 
tinuing successfully.  Enemy  attempts  to  break  out  of  the  encir- 
clement were  repulsed.  Situation  at  the  4th  and  9th  Armies  has 
not  undergone  noteworthy  changes. 

Northern  Army  Group; 

At  16th  Army  sector,  parts  of  X  Army  Corps  have  gained 
ground  against  pillbox  positions  and  heavily  mined  terrain. 
North  of  Lake  Ilmen  the  enemy  attacked  the  position  of  the  250th 
Spanish  Division  at  Novgorod  after  heavy  artillery  preparation. 
Enemy  attacks  on  Tikhvin  from  the  north  and  northvest  were  repul- 
sed. Enemy  transport  of  reinforcements  from  Leningrad  across  the 
ice  to  the  sector  west  of  Volkhovstroy  was  continued.  Attacks 
from  Leningrad  with  tank  and  plane  support  collapsed  under  the 
fire  of  the  1st  Infantry  Division.  16th  Army  has  taken  more  than 
50,000  prisoners  from  16  Nov.  to  J>0   Nov. 

2.  Finnish  and  Norwegian  Front: 
Nothing  to  report. 

3.  North  Africa: 

The  enemy  stopped  retreating  and  remained  south  of 
Trigh  el  Abd.  Rather  strong  enemy  forces  were  brought  into 
action  north  of  there  to  create  a  diversion.  A  renewed  attack 
from  this  area  is  expected.  A  Panzer  Group,  with  the  German 
Afrika  Korps  and  the  Italian  XXI  Army,  continued  mopping-up  op- 
erations in  the  area  southeast  of  Tobruk.  The  Gambara  Corps 
was  deployed  along  Trigh  Capuzzo,  ready  to  throw  off  an  attack 
from  the  south. 


#♦#****»♦*************♦*♦ 


"26" 


CONFIDENTIAL 

4  Dec.  1941 

Items  of  Political  Importance 

India: 

The  government  has  set  free  members  of  the  Congress  Party  who 
had  been  imprisoned  for  civil  disobedience,  among  them  the  well- 
known  leaders  of  the  Indian  independence  movement,  Nehru  and 
Azad. 

Turkey: 

On  2  Dec.  three  Russian  tankers  unloaded  27,000  tons  of  gasoline 
at  Istanbul,  bought  in  accord  with  recently  concluded  trade  agree- 
ments. The  tankers  will  return  to  Batum  for  additional  loads. 

Afghanistan: 

The  British  and  Russian  governments  have  demanded  permission  to 
use  the  road  from  India  over  Afghanistan  to  Russia  for  Anglo- 
Russian  traffic. 

U.S.A. : 

Public  opinion,  changeable  as  is  usual  in  times  of  crisis,  is  at 
present  taking  a  slight  turn  for  the  better.   Japanese  circles 
profess  to  know  that  British  Influence  in  Washington  tends  to 
have  a  moderating  effect. 

It  was  announced  in  Washington  that  Turkey  will  receive  aid  under 
Lend-Lease,  since  according  to  Roosevelt's  declaration  the  de- 
fense of  Turkey  is  vital  to  the  protection  of  the  United  States. 
The  Turkish  attitude  is  not  yet  known. 

The  responsible  committee  in  the  House  of  Representatives  passed 
a  new  appropriation  of  8  billion  dollars,  so  that  now  a  total  of 
68  billion  dollars  has  been  appropriated  since  1  July  1940.  The 
House  of  Representatives  passed  a  resolution  giving  the  govern- 
ment power  to  intervene  in  strikes  in  essential  industries.  Ac- 
cording to  a  Department  of  Agriculture  report,  agricultural  pro- 
ducts worth  $200,000,000,  seven  eights  of  them  foodstuffs,  have 
been  made  available  to  the  representative  of  the  British  govern- 
ment from  April  to  September  1941. 

Argentina : 

The  government  has  consented  to  put  the  entire  production  of 
wolfram  ores  up  to  3»000  tons  yearly  at  the  disposal  of  the  U.S.A. 
over  a  period  of  three  years.  Production  schedules  call  for  an 
increase  from  1,250  tons  in  1940  to  2,000  tons  in  the  first  year 
of  the  contract  and  5,000  tons  in  the  third  year. 

Australia: 

Political  Review  No.  284  discusses  internal  difficulties  in  con- 


-27- 


9862 


k   Dec.  1941  CONFIDENTIAL 

Election  with  the  Australian  war  effort  overseas  and  the  high  rate 
of  casualties  among  Australian  troops. 


Special  Items; 

The  Duce  stated  on  1  Dec.  to  the  German  General  at  the  Italian 
Armed  Forces  Headquarters,  in  the  presence  of  General  Cavallero, 
that  he  is  confident  that  the  battle  in  Marmarlca  will  be  brought 
to  a  successful  conclusion.  No  matter  what  the  outcome  of  this 
battle,  however,  he  has  the  strongest  apprehensions  about  the 
further  progress  of  the  struggle  for  Libya.  During  the  last  months 
the  situation  there  has  gotten  steadily  worse,  so  that  it  is  al- 
most impossible  to  supply  the  forces  there  with  their  most  urgent 
needs.  In  view  of  this  situation,  the  Duce  does  not  see  how  he 
can  replenish  the  losses  of  men  and  material  incurred  In  the  fight- 
ing or  how  to  ship  fresh  troops.  Neither  the  use  of  German  subma- 
rines, valuable  as  they  are,  nor  the  arrival  in  Sicily  of  the  II 
Air  Corps  could  change  the  transportation  situation  sufficiently 
to  enable  us  to  keep  up  witn  the  British  in  the  long  run.  The  only 
chance  that  he  can  see  for  a  basic  improvement  In  the  transporta- 
tion situation  is  in  freeing  Bizerte  harbor.  This  problem  is  of 
such  importance  that  one  could  make  far-reaching  concessions  to  the 
French  for  It,  for  Instance  by  releasing  prisoners  of  war.  A  solu- 
tion must  be  found  as  quickly  as  possible,  since  we  would  have  to 
have  the  use  of  Bizerte  by  December  at  the  latest.   In  case  the 
French  should  not  willingly  consent  to  our  use  of  Bizerte,  the  har- 
bor should  be  taken  by  force.  This  seems  necessary  because  the  on- 
ly other  alternative  for  real  improvement  of  the  transportation 
situation,  the  occupation  of  Malta,  Is  not  possible.   The  Duce  ex- 
plicitly asked  the  German  General  to  transmit  his  opinions  to  the 
Chief  of  Staff,  Armed  Forces  High  Command.   He  does  not  believe 
that  Libya  can  be  held  much  longer  nor  that  a  flow  of  supplies  can 
be  maintained  unless  it  Is  possible  at  least  for  supply  trucks  to 
pass  through  Tunisia  in  the  immediate  future. 

After  the  conference  with  the  Duce,  General  Cavallero  asked  the 
German  General  to  emphasize  In  his  report  that  the  only  way  the 
difficult  problem  of  transportation  could  be  solved  was  by  rout- 
ing traffic  through  Tunisia.   He  added  that  in  his  opinion  the 
Duce1 s  Idea  of  taking  Bizerte  by  force,  If  necessary,  could  not 
be  realized. 

This  very  noteworthy  contribution  to  the  theme  of  collaboration 
has  been  transmitted  to  the  Chief  of  Staff,  Armed  Forces  High  Com- 
mand and  the  Commanders  in  Chief  of  the  three  branches  of  the  Arm- 
ed Forces  by  the  Chief,  Intelligence  Division.   It  proves  very  con- 
clusively the  critical  situation  in  which  the  Axis  Powers  now  find 
themselves  in  the  Mediterranean  area  and  in  North  Africa,  and  in 
which  they  will  remain  for  a  long  time  to  come  because  of  the  fact 
that  the  supply  routes  were  not  kept  open  in  time  and  with  suffl- 
cient~forces  by  heavy  attacks  of  the  air  forces  at  decisive  points. 
The  Naval  Staff  had  repeatedly  enphaslzed  the  vital  significance 
of  doing  so.   This  viewpoint  is  .ot  to  be  ta cen  as  a  criticism  of 


-28- 


4  Dec.  19^1  CONFIDENTIAL 

decisions  which  have  been  made,  since  these  were  no  doubt  strong- 
ly influenced  by  the  campaign  against  Russia  and  by  other  impor- 
tant political  considerations. 


Situation  4  Dec.  1941 

I.   Var  in  Foreign  Waters 

1.   Enemy  Situation; 

North  Atlantic: 

Destroyers  ZULU  and  SIKH  arrived  in  Gibraltar  from 
England  on  4  Dec.  The  Portuguese  freighter  JOANNA  was  escort- 
ed to  Gibraltar  by  British  naval  forces.  Details  about  con- 
struction of  a  U.S.  naval  base  in  Londonderry  (northern  Ireland) 
in  News  Analysis  No.  42  of  the  series  "Foreign  Navies"  of  the 
Naval  Staff,  Intelligence  Division. 

t 

According  to  a  semi-official  report,  construction  of  a  U.S.  naval 
base  on  the  arctic  island  of  Jan  Mayen  is  under  consideration. 

South  Atlantic : 

Five  British  merchantmen  headed  for  the  Pacific  and 
nine  for  the  Atlantic  passed  through  the  Panama  Canal  between 
2  Nov.  and  J50  Nov..   On  1  Dec.  an  auxiliary  cruiser  of  6,000  tons 
passed  through  to  the  east.  U.S.  cruiser  MEMPHIS  and  destroyer 
DAVIS  left  Pernambuco  on  J>   Dec.  A  convoy  with  troops,  ammuni- 
tion and  tanks  is  expected  in  Freetown  on  10  Dec. 

Pacific  Ocean: 

Target  practice  of  coastal  artillery  at  Manila.   Mines 
are  to  be  laid  beginning  in  December  and  the  naval  bases  of  Ca- 
vite  and  Olongapo  will  be  blacked  out  until  further  notice. 

According  to  press  reports  from  Shanghai,  an  agreement  has  been 
reached  for  the  cooperation  of  the  British  and  American  Far 
Eastern  Fleets.  The  Americans  are  charged  with  protection  of 
the  area  around  the  Philippines  and  between  Manila  and  Hong  Kong, 
under  the  Commanding  Admiral  of  the  U.S.  Navy  in  Cavite.   The 
light  British  forces  stationed  In  Hong  Kong,  including  the  air 
units,  will  be  under  his  command.  The  remaining  area  will  be 
patrolled  for  the  time  being  by  the  British  naval  units  stationed 
in  Singapore.   In  case  heavy  U.S.  units  are  transferred  to  East 
Asia,  this  will  become  mainly  their  responsibility.  Singapore 
will  then  become  a  joint  Anglo-American  base.   The  British  Naval 
Commander  is  responsible  for  defending  the  area  west  of  Singapore 
and  the  sea  route  to  Australia  and  the  Malayan  waters.  Dutch 
naval  vessels  remain  in  the  defense  service  of  the  Dutch  Colonies. 
The  supreme  command  in  case  of  joint  Anglo-American  operations  was 
also  discussed. 

Among  the  British  units  which  arrived  in  Singapore  are  two  battle- 
ships . 


-29- 


9862 


4  Dec.  1941  CONFIDENTIAL 

2.   Own  Situation: 

Further  reports  about  the  battle  of  the  SIDNEY  with  the 
auxiliary  cruiser  CORMORAN  mention  that  CORMORAN  scored  hits  on 
SIDNEYS  bridge  with  the  first  salvo,  destroying  the  lines  of 
communication  and  artillery  control.  The  battle  took  place  in 
the  evening  at  dusk,  and  lasted  two  and  a  half  hours.   CORMORAJJ 
exploded  after  the  crew  had  abandoned  ship.  The  German  survivors 
saw  the  burning  SIDNEY  disappear  over  the  horizon.   Nothing  fur- 
ther was  observed. 

Report  about  enemy  situation  by  Radiograms  I856,  1928  and  2343. 


II.   Situation  Vest  Area 


1.  Enemy  Situation: 

Nothing  to  report.  ( 

2.  Own  Situation:  ' 

Atlantic  Coast: 

Returning  blockade  runner  BURGENLAND  was  apparently  lo- 
cated in  Spanish  waters  by  our  air  reconnaissance.   She  is  ex- 
pected on  5  Dec.  A  Mark  XVI  mine  has  been  swept  west  of  Oleron 
along  convoy  route  "Rosa". 

Channel  Coast: 

Departure  of  ship  "10"  postponed  for  24  hours.   On  a 
detour  of  route  "Rosa",  which  is  mined  near  Fecamp,  18  or  19 
mines  were  also  detected.  The  new  detour  is  evidently  free  of 
mines. 

The  4th  PT  Flotilla  with  five  vessels  and  the  2nd  PT  Flotilla 
with  two  vessels  laid  mines  along  convoy  routes  in  the  evening. 

Eight  enemy  air  raids  were  made  in  November  on  forces  of  the  ( 

Commanding  Admiral,  Defenses,  West  during  which  one  minesweeper 
was  sunk.  Loss  of  personnel :   6  dead,  1J  wounded.  Five  enemy 
planes  were  shot  down. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea: 

Enemy  Situation: 

Brisk  air  activity  observed.  Location  reports  of  our 
PT  boats.  According  to  radio  intelligence  the  Convoy  Control 


-}0- 


9862 


> 


4  Dec.  194l  CONFIDENTIAL 

Station  at  Reykjavik  reported  departure  of  convoy  P  18,  of  which 
8  units  are  meant  for  Edinburgh  and  23  for  Hull;   it  confirms  the 
Convoy  Control  Stations  at  Aberdeen  and  Edinburgh  as  to  the  sink- 
ing of  the  units  NG,  MK,  and  MS  and  asked  when  tankers  "RU"  and 
"RO"  will  leave.  Convoy  Control  Station  Londonderry  was  notified 
that  convoy  P  4  left  Reykjavik  at  midnight  with  56  freighters. 
(See  Radio  Intelligence  Report  1225.) 

Own  Situation: 

Mine-exploding  vessel  "53"  (ship  "10")  is  proceeding 
in  the  area  of  the  Commanding  Admiral,  Defenses,  North  to  Flush- 
ing according  to  plan  with  the  2nd  Torpedo  Boat  Flotilla  and  the 
4th  Minesweeper  Flotilla.   Otherwise  nothing  to  report. 

2.   Norway  t 

Enemy  Situation; 

A  submarine  has  been  reported  south  of  Kvaloe  and 
another  one  north  of  Hammerfest.  The  submarine  which  was  at- 
tacked by  submarine  chasers  on  3  Dec.  escaped  after  dark. 

Own  Situation; 

For  preliminary  report  by  Commander,  12th  Submarine 
Chaser  Flotilla  about  submarine  pursuit  and  loss  of  submarine 
chaser  UJ  "1708"  see  Radiogram  2140.  Search  for  survivors  of 
UJ  "1708"  unsuccessful.  TANGA  and  8th  PT  Boat  Flotilla  with 
the  LUEDERITZ  arrived  in  Trondheim.  Admiral,  Arctic  Ocean  ar- 
rived in  Kirkenes.  He  will  proceed  to  Rovaniemi  and  Kemi  for 
conferences  with  5th  Air  Fleet  and  Army  High  Command,  Norway  on 

5  Dec.  The  Norwegian  steamer  VESTRI  (499  BRT)  was  set  afire 
during  an  enemy  air  raid  off  Tungenes  and  was  later  beached. 

Regarding  convoy  traffic  the  following  directive  has  been  is- 
sued by  the  Naval  Staff: 

1.  Whenever  the  situation  permits,  fast  ships  equipped  with 
anti-aircraft  guns  are  to  sail  independently. 

2.  Since  delays  resulting  from  the  transshipment  regulations 
of  the  Transportation  Ministry  can  hardly  be  remedied,  it  is 
especially  important  that  all  other  causes  for  delay  be  avoid- 
ed. 

3.  Possible  greater  risk  for  vessels  sailing  independently 
must  be  reckoned  with.  See  Radiogram  1545  and  compare  War 
Diary  2  Dec. 

The  allocation  of  three  additional  submarines  requested  by  the 
Commanding  Admiral,  Norway  is  rejected.  The  three  submarines 
which  he  has  already,  U  "134",  U  "454",  and  U  "131"  are  replace- 
ments for  the  three  submarines  U  "567",  U  "578",  and  U  "757", 
which  will  not  be  ready  for  action  for  3ome  time,  and  for  U  "132", 
which  was  transferred  by  order  of  the  Commanding  Admiral,  Subma- 
rines. The  Naval  Staff  has  no  objections  to  the  proposal  of  the 


-3I-  9862 


4  Dec.  19*11  CONFIDENTIAL 


Commanding  Admiral,  Norway  to  order  one  of  the  three  U-boats  to 
temporary  duty  off  Bear  Island. 


IV.   Skagerrak,  Baltic  Sea,  Baltic  Sea  Entrances 

1.  Enemy  Situation: 

Besides  the  STALIN  and  a  steamer  of  700  BRT,  a  medium 
sized  transport  and  a  PT  boat  were  sunk  in  the  Juminda  mine  field. 
Od ens holm  raised  two  white  flags  after  artillery  bombardment.  The 
"White  Sea  Canal  and  the  Vyg  Lake  are  frozen  over. 

2.  Own  Situation: 

There  are  still  about  800  men  aboard  the  STALIN,  accord- 
ing to  the  Navy  Liaison  Officer  to  the  Armed  Forces  High  Command, 
Part  of  the  original  6,000  men  carried  aboard  was  removed  by  Rus- 
sian destroyers. 

Since  numerous  explosions  were  observed  on  Seiskari,  the  evacua- 
tion of  the  Islands  In  the  inner  part  of  the  Gulf  of  Finland  may 
be  assumed.   Occupation  of  Odensholm  by  naval  shock  troop  is 
planned  for  5  Dec. 

Railroad  transportation  between  Reval  and  Helsinki  has  been  dis- 
continued. 

The  German  steamer  ERICH  FAULBAUM  sank  after  a  detonation  off 
Warnemuende . 


V.   Merchant  Shipping: 

The  Transportation  Ministry  plans  to  use  some  Belgian  and  Dutch 
steamers,  especially  steam  trawlers,  for  service  along  the  west 
coast  of  Norway.   These  ships  will  sail  under  Belgian  or  Dutch 
flags  and  will  be  manned  exclusively  by  Belgian  or  Dutch  person- 
nel.  The  Transportation  Ministry  asks  whether  there  are  any  ob- 
jections to  this  on  the  part  of  the  Naval  Staff  and  what  measures 
the  Naval  Staff  considers  necessary  to  prevent  possible  flight  of 
these  ships  to  Allied  ports. 


VI.   Submarine  Warfare 

1.   Enemy  Situation: 

At  noon  a  British  plane  met  a  convoy  northwest  of  Rockall 
Bank.  A  torpedo  boat  flying  the  Norwegian  flag  was  reported  south- 
east of  Rockall  Bank.  According  to  a  British  Admiralty  report,  a 
British  steamer  of  5,369  BRT  in  convoy  northwest  of  Azores  was  tor- 
pedoed and  exploded  on  29  Nov..   The  British  steamer  CLAN  MACBEAM 


-52- 


9862 


4  Dec.  1941 


CONFIDENTIAL 


(5,000  BRT)  reported  sighting  a  torpedo  on  3  Dec.  in  GF  6110. 

2.   Ovn  Situation; 

A  submarine  reported  sinking  an  ore  steamer.  Another 
submarine  reported  sinking  the  steamer  FJORD  (4,032  BRT),  sur- 
vivors of  which  were  landed  at  Gibraltar  on  3  Dec. 

Commanding  Admiral,  Submarines  received  orders  from  the  Naval 
Staff  on  2  Dec.  to  send  four  more  submarines  to  eastern  Medi- 
terranean area  Immediately  at  the  expense  of  a  temporary  weak- 
ening of  the  position  west  of  Gibraltar. 

With  reference  to  employing  submarines  to  prevent  Russian  ships 
from  leaving  the  Turkish  Straits  (see  War  Diary  29  Nov.,  Black 
Sea,  Own  Situation),  Commander,  Submarines  at  the  German  Naval 
Command,  Italy  reports  that  after  return  of  submarines  U  "331" 
and  U  "559",  the  eastern  Mediterranean  has  only  five  submarines. 
Reinforcement  by  the  four  submarines  coming  from  the  western 
Mediterranean  (see  foregoing  directive  to  the  Commanding  Admiral, 
Submarines)  cannot  be  expected  before  9  Dec.  Naval  High  Command, 
Italy  considers  it  urgently  necessary  to  concentrate-  all  available 
submarines  in  this  area  in  view  of  the  present  situation  in  North 
Africa.  Naval  High  Command,  Italy  recommends  sending  the  subma- 
rine originally  scheduled  for  keeping  Russian  ships  in  the  Turk- 
ish Straits  for  duty  along  the  North  African  coast  at  least  until 
the  four  U-boats  arrive  from  the  west. 

The  Naval  Staff  rejects  this  request  since  the  submarine  was 
given  the  assignment  by  the  Fuehrer  personally. 

Submarines  U  "97"  and  U  "371"  have  left  Salamis. 

t 

Further  report  on  the  situation  In  War  Diary,  Part  B,  Vol.  IV. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 
Nothing  to  report. 

2.  Mediterranean  Theater: 

Use  of  German  air  forces  In  fighting  in  Libya, 

3.  Eastern  Front: 
Nothing  to  report. 


-33- 


9862 


4  Dec.  19^1  CONFIDENTIAL 

VIII.  Warfare  In  the  Mediterranean 

1.  Enemy  Situation; 

Western  Mediterranean; 

The  following  ships,  besides  the  vessels  of  Group  H, 
are  in  Gibraltar:  47  steamers,  1  tanker,  2  passenger  liners  and 

5  auxiliary  cruisers.   Day  and  night  patrol  of  the  Strait  of 
Gibraltar  by  destroyers  and  gunboats  continues  to  be  strong.  The 
night  patrol  now  includes  Moroccan  territorial  waters.  According 
to  a  Spanish  agent,  the  transport  RANGITATA,  which  left  on  1  Dec. 
ostensibly  for  Libya,  has  2,000  to  3,000  infantry  troops,  air 
force  personnel  and  marines  aboard. 

Central  and  Eastern  Mediterranean: 

Three  British  ships  of  an  undetermined  type  shelled 
the  coast  west  of  Tobruk  shortly  after  midnight  and  afterwards 
moved  west.  According  to  radio  monitoring,  planes  left  at  0530 
and  0830  to  assist  vessels  under  attack  presumably  off  the  Mar- 
marican  coast.  Radio  communication  between  the  British  Admiral- 
ty and  the  Mediterranean  Fleet  as  well  as  between  Malta,  Alexan- 
dria and  some  submarines  was  extremely  active. 

According  to  reports 'received  from  Italian  agents  on  3  Dec,  two 
damaged  vessels  put  in  at  Alexandria  in  the  last  few  days.   One 
seriously  damaged  battleship  is  supposed  to  go  to  the  United 
States  via  the  Red  Sea  for  repairs.   Two  destroyers  arrived  on  2 
Dec.  with  many  survivors  of  a  cruiser  which  is  said  to  have  been 
sunk  by  a  mine.   However,  the  Italian  Navy  believes  an  Italian 
aerial  torpedo  was  responsible  for  the  sinking.  According  to  a 
report  from  the  Italian  Naval  Attache  at  Bucharest,  a  convoy  is 
waiting  at  Alexandria  to  take  part  in  landing  operations  along 
the  Gulf  of  Sidra. 

The  Australian  destroyer  PARAMATTA  was  torpedoed  off  Tobruk  dur- 
ing the  night  of  27  Nov.,  according  to  a  deciphered  radio  message. 
For  Life  Magazine  coverage  of  bomber  attacks  on  the  ILLUSTRIOUS  on 
10  Jan.  1941  see  News  Analysis  No.  42,  section  "Foreign  Navies", 
of  the  Naval  Staff,  Intelligence  Division. 

2.  Situation  Italy: 

Five  German  PT  boats  arrived  in  Augusta  on  3  Dec. 
Twelve  Italian  submarines  are  in  waiting  position  in  the  Medi- 
terranean and  five  in  the  Atlantic.   211  men  are  missing  from 
the  tanker  MONTEVANI  and  the  destroyer  DA  M0ST0. 

3.  Transport  of  Supplies  to  North  Africa: 

In  transporting  three  landing  craft  from  Tripoli  to 
Benghazi,  one  sank  because  of  heavy  seas  on  3  Dec.   Other  traf- 
fic normal . 

4.  Area  Naval  Group  South: 


■34-  9862 


4  Dec.  1941  CONFIDENTIAL 

Aegean  Sea; 

Auxiliary  naval  vessel  BARLETTA  arrived  at  Piraeus 
after  laying  mines.   See  War  Diary,  Part  B,  Vol.  IV  for  report 
from  Naval  Shore  Command,  Crete  about  torpedoing  of  the  sal- 
vage steamer  HERKULES  at  Candia  through  a  single  net  barrage, 
and  about  proposals  of  Net  Barrage  Unit  to  Group  Command  South 
for  laying  a  four-fold  barrage. 

Black  Sea; 

Enemy  Situation; 

According  to  an  Italian  report,  there  are  now  13  Rus- 
sian vessels  at  Istanbul,  including  three  recent  arrivals.  Air 
reconnaissance  over  Sevastopol  reveals  nothing  new. 

Own  Situation; 

At  Burgas  two  Siebel  ferries  burned  out  during  the  night 
of  2  Dec.   Cause  of  fires  unknown.   The  DELFTNUL  did  not  leave 
because  of  damage  to  torpedo  tube.   Cause  of  loss  of  steamers 
CAVARNA  and  CORDELIA  not  yet  determined. 


IX.  Army  Situation 

1.  Russian  Front; 
Southern  Army  Group; 

Little  action  in  the  Crimea  because  of  bad  weather. 

At  the  1st  Panzer  Army  sector  the  enemy  continued  strong  attacks 
along  the  entire  front  of  the  III  Panzer  Corps .  Attacks  on  the 
16th  Infantry  Division,  the  4th  Mountain  Division  on  the  left 
flank  of  the  Army,  as  well  as  a  night  attack  on  Italian  mechan- 
ized divisions  were  repulsed.   Only  sporadic  enemy  attacks  at 
the  17th  and  6th  Army  sectors. 

Central  Army  Group; 

2nd  Army  and  2nd  Panzer  Army  movements  are  continuing 
with  success.  Little  fighting  in  sectors  of  4th  and  9th  Army 
southwest  of  Moscow.  Repeated  strong  enemy  attacks  were  repulsed 
west  and  northwest  of  Moscow. 

1 

Northern  Army  Group; 

Enemy  attacks  at  Tikhvin,  and  attempts  to  break  through 
along  the  Leningrad  front  were  repulsed. 

2.  Finnish  and  Norwegian  Front; 

Attack  on  Medver'.iya  Gora  by  Karelian  Army  is  continu- 


.,£-  9862 


j] 


4  Dec.  19*U  CONFIDENTIAL 

ing  successfully. 

3.   North  Africa: 

Enemy  reconnaissance  with  strong  forces  from  the  area 
around  Bir  el  Gobi  in  direction  El  Adem.  Armored  Group  expects 
enemy  to  attack  by  5  Dec. 

Own  losses  from  18  Nov.  to  4  Dec: 

16  commanding  officers  and  a  corresponding  number  of  offi- 
cers. No  exact  figures  available. 
3,800  non-commissioned  officers  and  men. 

Materiel : 

22  tanks  "II*1 

95  tanks  "III" 

25  tanks  "IV" 

10  heavy  armored  scout  cars 

15  light  armored  scout  cars. 


»***♦***#********♦******# 


-36- 


986  2 


CONFIDENTIAL 

5  Dec.  1941 

Items  of  Political  Importance 

Great  Britain; 

The  debate  in  the  House  of  Commons  regarding  extension  of  uni- 
versal military  service  led  to  passing  the  government  proposal 
that  all  male  and  female  workers  he  mobilized  with  321  votes 
to  10.  An  amendment  to  nationalize  industry  (railroads,  mines 
and  munitions  factories),  sponsored  by  the  Labor  Party,  was  re- 
jected by  a  vote  of  336  to  40.  The  shortage  of  coal  necessi- 
tates a  further  reduction  of  railroad  traffic,  which  has  already 
been  reduced  to  75$  of  normal . 

Finland: 

On  4  Dec.  the  government  gave  a  negative  reply  to  the  British 
ultimatum. 

U.S.S.R. : 

A  pact  has  been  signed  by  Stalin  and  the  head  of  the  Polish 
Government  in  Exile  providing  that  Poland  and  Russia,  together 
with  the  other  Allies  and  with  help  from  the  United  States, 
will  fight  the  war  to  a  successful  conclusion.  For  further  de- 
tails see  Political  Review  No.  286,  Paragraph  4. 

U.S.A. : 

According  to  Reuter,  the  Japanese  answer  to  the  U.S.  request  for 
an  explanation  of  Japanese  troop  reinforcements  in  Indo-China 
is  to  be  handed  to  U.S.  officials  in  Washington  on  5  Dec. 

Domei  declares  that  the  principles  contained  in  the  U.S.  note 
could  not  form  a  basis  for  negotiations  between  the  U.S.  and 
Japan.  With  regard  to  rumors  about  the  possibility  of  a  break 
in  U.S. -Japanese  relations  in  the  near  future,  Japanese  Govern- 
ment sources  declare  that  even  an  unfavorable  conclusion  of  the  • 
talks  in  Washington  would  not  necessarily  lead  directly  to  out- 
right war  in  the  Pacific. 

The  isolationist  paper  Chicago  Tribune  published  a  supposedly 
very  confidential  report  of  Roosevelt's  about  preparation  of  a 
strong  invasion  army  numbering  five  million  men  for  use  in 
Europe  in  July  1943. 

The  installation  of  American  food  and  ammunition  depots,  flying 
schools,  and  repair  shops  in  Egypt,  Iraq  and  Iran  as  well  as 
inauguration  of  daily  plane  service  between  Washington  and  Cairo 
are  given  as  proof  that  Roosevelt  expects  to  stay  in  Africa  for 
a  long  time  and  that  he  expects  the  decisive  battle  of  this  war 
to  be  in  the  Atlantic. 

According  to  newspaper  repqrts,  U.S.  shipments  to  Russia  are 
supposed  to  have  remained  far  below  schedule  during  the  last 


-37"  9862 


5  Dec.  1941  CONFIDENTIAL 

two  months,  due  partly  to  transportation  difficulties  and  partly 
to  the  hesitation  of  the  British  and  American  Armed  Forces  to 
release  war  materiel. 

Thailand : 

Occupation  of  Thailand  by  Japanese  troops  is  imminent,  accord-  . 
ing  to  foreign  press  reports. 

Turkey; 

Comments  in  the  Turkish  press  about  the  German  reverses  at  Rostov 
are  in  part  very  unfriendly. 


Situation  5  Dec.  1941 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation; 

Special  Items; 

For  a  synopsis  of  enemy  reports  gathered  from  radio 
monitoring  and  radio  decoding  by  the  Naval  Staff,  Chief  of  Naval 
Communications  Divisions,  Intelligence  Branch  up  to  30  Nov.  1941, 
see  Radio  Intelligence  Reports  (B-Berichte)  No.  48/41. 

North  Atlantic; 

According  to  a  Spanish  report,  the  transport  RANGITATA, 
which  was  reported  on  4  Dec.  as  loaded  with  troops  for  Libya, 
left  on  5  Dec.  with  three  destroyers  on  a  westerly  course.   Prob- 
ably camouflage  course! 

According  to  an  Italian  report,  both  American  and  British  forces 
are  patrolling  off  the  Azores.   Two  battleships  and  several  de- 
stroyers are  said  to  be  on  duty  there. 

According  to  a  review  by  the  U.S.  Navy  Department,  two  battle-  ( 

ships,  one  carrier,  fourteen  destroyers  and  ten  submarines  were 
commissioned  during  1941  up  to  1  Dec. 

South  Atlantic; 

The  British  tanker  WOLFE  sent  a  merchant  raider  dis- 
tress signal  off  the  Lesser  Antilles  on  15  Nov. .  This  message 
was  cancelled  later  and  transmitted  to  radio  station  Annapolis 
by  U.S.  radio  station  San  Juan. 

Indian  Ocean; 

« 

According  to  a  report  from  the  Japanese  naval  attache 
at  Bangkok,  the  following  British  ships  were  lying  in  Trincomalee 
harbor  on  20  Nov.:   The  battleshiDs  PRINCE  OF  WALES,  REPULSE,  and 


-38- 


9862 


5  Dec.  19^1  CONFIDENTIAL 

REVENGE;   the  carriers  EAGLE  and  HERMES;   9  cruisers  and  6  de- 
stroyers. This  force  left  on  25  Nov.  and  arrived  in  Singapore 
on  2  Dec.  with  the  exception  of  one  carrier  and  several  cruisers 
which  apparently  made  for  another  port. 

Pacific  Ocean; 

According  to  a  deciphered  radio  directive  from  the  U.S. 
station  at  Cavite,  American  merchantmen  in  the  Pacific  are  again 
receiving  definite  sailing  orders  and  directions  on  showing 
lights. 


2.   Own  Situation: 
1917. 


For  enemy  situation  reports  see  Radiograms  0720,  1753, 


II.  Situation  West  Area 

1.  Enemy  Situation t 

Air  reconnaissance  sighted  ten  steamers  lying  to  off 
Plymouth,  and  a  destroyer  on  southwest  course  east  of  Falmouth. 

2.  Own  Situation: 
Atlantic  Coast: 

Three  ground  mines  were  removed  off  Brest. 

Directive  to  Group  West:  Commanding  Admiral,  Submarines  reports 
that  the  supply  ship  BENNO,  a  tanker,  will  depart  in  a  manner 
similar  to  the  PY/PHON.  The  BENNO,  intended  for  transporting  fuel 
and  other  supplies  for  blockade -runners  to  Japan,  will  be  ready 
for  departure  at  St.  Nazaire  after  12  Dec. 

Order  for  departure  of  BENNO  according  to  directive  of  Naval  Staff, 
Operations  Division  (l/Skl.  Ik  2077/^1  op  Gkdos.  Chefs.)  in  War 
Diary,  Part  C,  Vol.  IX. 

Regarding  allocation  of  light  naval  forces  (cf.  War  Diary  30  Nov.) 
the  Commanding  Admiral,  Submarines  and  Group  West  have  been  re- 
quested to  make  available  the  2nd  Torpedo  Boat  Flotilla  beginning 
10  Jan.  and  the  four  destroyers  beginning  18  Jan. .  Contrary  to 
this  directive,  Group  North  requested  that  the  2nd  Torpedo  Boat 
Flotilla  be  given  a  rest  period  and  that  newly  commissioned  de- 
stroyers and  torpedo  boats  be  employed  to  reinforce  the  defense 
forces  in  the  Skagerrak.  This  request  is  denied.  Regarding  the 
length  of  time  which  the  torpedo  boats  must  spend  in  dry  dock, 
the  decision  has  been  left  to  Group  West  in  accord  with  Fleet  Com- 
mand and  Commander,  Torpedo  Boats. 

Channel  Coast: 

Departure  of  ship  "10"  postponed  another  2k   hours. 


-39- 


9862 


5  Dec.  19^1  CONFIDENTIAL 

Minelaying  by  the  2nd  and  4th  PT  Flotillas  was  carried  out  ac- 
cording to  plan.   Destroyers  were  unable  to  prevent  successful 
attacks  on  convoys  because  of  the  bright  moonlight.   For  brief 
reports  from  the  two  flotillas  see  Radiograms  1515  and  2010. 
Enemy  air  raids  in  the  Channel  area  during  the  day.  A  harbor 
defense  vessel  was  damaged  off  Boulogne  during  these  raids  with 
a  few  casualties  among  personnel.   Two  harbor  defense  boats  sus- 
tained light  damage  off  Le  Havre  and  one  attacker  was  shot  down 
by  a  naval  battery.  A  few  casualties  among  personnel  from  at- 
tacks on  a  group  of  the  38th  Minesweeper  Flotilla  and  motor  fish- 
ing vessel  of  the  training  unit. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation: 

Little  air  activity  before  noon,  but  very  lively  air 
activity  in  the  afternoon  over  the  entire  North  Sea  region.  A 
plane  sent  an  SOS  northwest  of  Stadland. 

Own  Situation: 

Steamers  KAI  and  ARIEL  in  an  eastbound  convoy  ran 
aground  off  Schiermonnikoog.   The  ARIEL  was  able  to  get  free. 
Salvage  of  the  KAI  has  started.  A  few  casualties  among  the 
crew  of  a  fishing  vessel. 

2.  Norway : 

Enemy  Situation: 

According  to  air  reconnaissance,  the  regular  patrols 
are  operating  off  Kola  Bay  and  in  the  western  sea  lanes,  other- 
wise there  i&  very  little  ship  traffic.  According  to  radio 
monitoring,  submarines  are  suspected  off  Kvaloe  and  Nordkyn.  A 
submarine  was  sighted  off  North  Cape. 

Radio  monitoring  by  the  Air  Force  daily  intercepted  radio-tele- 
phone conversations  in  the  Hammerfest  region  between  British  and 
Russian  submarines  and  stations  on  land  in  English,  Russian  and 
Norwegian.  It  was  learned  that  three  British  submarines  off 
Hammerfest  were  relieved  on  3  Dec.  and  that  Russian  submarines 
were  probably  lying  off  Honningsvaag. 

Own  Situation: 

Steps  have  been  taken  to  make  use  of  the  radio  moni- 
toring of  the  Air  Force  and  to  make  available  radio  equipment 
and  Russian  interpreters.   It  was  learned  from  the  conversation 
between  two  enemy  submarines  on  4  Dec.  that  the  British  subma- 
rine HENRY  was  so  heavily  damaged  by  one  of  our  subchasers  that 
she  had  to  be  abandoned  and  the  crew  was  transferred  to  the  Rus- 


-40- 


9862 


5  Dec.  194l  CONFIDENTIAL 

sian  submarine  SUGAR.  It  Is  gratifying  to  kr.ow  that  the  attack 
on  the  submarine  was  successful,  even  though  the  subchaser  UJ 
"1708"  was  sunk.   (See  War  Diary  3  Dec.  1941.)  The  Norwegian 
steamer  ISLAND  was  torpedoed  by  an  enemy  submarine  off  Mehavn. 
The  crew  was  rescued. 

In  view  of  the  threat  of  enemy  submarines  along  the  inter-island 
route  off  the  Arctic  coast,  the  Commanding  Admiral,  Norway  rec- 
ommends diversion  of  destroyers  and  TANGA  off  this  route.  The 
Commanding  Admiral,  Norway  points  out  the  possibility  that  ap- 
pearance of  enemy  forces  off  the  Arctic  coast  is  connected  with 
probable  arrival  of  convoy  PQ  5  in  the  Arctic  Ocean  between  4 
Dec.  and  8  Dec.  headed  for  Murmansk,  See  Radiogram  1645. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.   Enemy  Situation; 
1 
According  to  radio  monitoring,  transport  MOLOTOV 
radioed  Hogland  for  help  the  morning  of  3  Dec.  According  to 
further  intercepted  news,  traffic  on  Lake  Ladoga  virtually  came 
to  a  standstill  on  3  Dec.  as  a  result  of  the  fuel  shortage.  It 
is  planned  to  free  several  icebound  ships  by  blasting.  A  chan- 
nel free  of  ice  approximately  2  km.  wide  in  the  Volkhov  estuary 
was  reported  on  5  Dec.  Six  ships  with  steam  up  were  lying  in 
the  channel.  The  channel  between  Kronstadt  and  Leningrad  was 
frozen  over.  According  to  a  report  by  the  Commander  in  Chief, 
Air,  Operations  Staff  to  1st  Air  Force,  the  Liaison  Officer  of 
Northern  Army  Group  reports  that  the  battleship  MARAT  shells  our 
radio  intercept  points  and  battery  daily  with  eight  to  twelve 
salvos  of  30.5  cm  caliber  from  her  two  triple  turrets  remaining 
in  action.  According  to  Army  opinion,  the  MARAT,  which  is  being 
painted  white  at  present,  can  be  put  completely  out  of  action 
only  by  heavy  or  very  heavy  bombs. 

Interrogation  of  the  Commander  of  the  Russian  Transport  Fleet, 
who  was  captured  aboard  the  STALIN,  brought  out  the  following 
information:  The  STALIN  left  Kronstadt  on  24  Nov.  preceded  by 
three  minesweepers  and  accompanied  by  two  destroyers.  The  STALIN 
had  waited  in  Kronstadt  for  13  days  until  a  way  had  been  cleared 
north  of  Juminda  mine  barrage,  and  then  arrived  in  Hangoe  on  27 
Nov..  Evacuation  of  Hangoe  has  been  under  way  since  25  Nov.. 
According  to  the  prisoner's  statement,  morale  of  the  Navy  is  good, 
but  that  of  the  Army  bad.  North  shipyard  in  Leningrad  has  been 
knocked  out  by  German  shelling;  other  shipyards  were  damaged  but 
are  still  working.   OKTYABRSKAYA.  REVOLUTSIYA  and  MAXIM  GORKI  are 
said  to  be  ready  for  action  again,  but  MARAT  is  out  of  commission. 
All  ships  are  supposed  to  be  blown  up  rather  than  be  captured  by 
the  enemy.  The  transport  fleet  for  evacuation  of  Hangoe  and 
Odensholm  consists  of  STALIN,  MOLOTOV  (9,000  tons  each),  OTTO 
SCHMIDT,  LEVANDOVSKI,  STARAYA  PETILETKA  (8,000  tons  each),  AXEL 
KARL  (German  prize  of  4,000,ton^  and  six  smaller  steamers.  There 
are  also  five  icebreakers,  two  heavy,  two  medium  and  one  light. 


9862 


5  Dec.  194l  CONFIDENTIAL 

Transport  fleet  was  used  for  reinforcements  in  the  Gulf  of  Finland 
and  also  evacuated  Bjoerkoe  (see  Radiogram  08ll). 

2.  Ovn  Situation; 

Odensholm  was  occupied  at  1100  "by  Marine  shock  troops. 
According  to  a  report  from  Commanding  Admiral,  Baltic  Countries, 
about  7,050  men  were  taken  aboard  the  STALIN  at  Hangoe.  The  ship 
received  two  mine  hits  and  one  artillery  hit,  whereby  about  4,000 
men  are  said  to  have  been  killed.  After  the  first  mine  hit,  500 
men  were  transferred  to  a  destroyer,  among  them  the  Commanding 
Officer  of  Hangoe,  commissars  and  the  mine  pilot.  Present 
weather  conditions  make  further  investigation  impossible. 

The  Great  Belt  has  been  closed  temporarily  because  of  suspected 
danger  from  aerial  mines.  The  4th  Transport  Squadron  Oslo-Vasa, 
with  a  complement  of  1,775  men  aboard,  will  leave  Horten  on  6  Dec. 
with  two  steamers. 

The  request  of  the  Finnish  Naval  Command  for  Russian  prisoners 
from  the  STALIN  for  the  purpose  of  questioning  them  about  the  lo- 
cation of  land  and  sea  mines  and  for  use  in  minesweeping  was  en- 
dorsed by  the  Naval  Staff  and  transmitted  to  the  Armed  Forces 
High  Command.   One  condition  for  granting  this  request  is  that 
our  own  Naval  Staff  is  informed  of  the  testimony  and  the  use  to 
which  it  Is  put.  Corresponding  message  to  Group  North  by  order 
of  Commanding  Admiral,  Baltic  Countries,  see  Radiogram  l8l8. 

3.  Special  Items; 

a.  The  assignments  which  were  given  the  Navy  by  the 
Fuehrer  for  the  war  in  the  Baltic  against  Soviet  Russia  have  been 
carried  out  in  spite  of  very  strong  enemy  superiority  and  with 
limited  forces,  which  were  partly  hardly  fit  for  action.  The  en- 
emy was  put  on  the  defensive  from  the  very  beginning  of  the  cam- 
paign. 

These  successes,  the  like  of  which  has  never  occurred  in  the 
history  of  the  war,  were  achieved  because  the  commanding  offi- 
cers in  charge  of  operations  and  their  staffs  were  capable  of 
making  bold  decisions  and  the  troops  were  constantly  resolved 
and  ready  to  give  all  they  had.  The  Commander  in  Chief,  Navy 
commends  all  admirals,  commanding  officers,  officers  and  men  of 
the  armed  forces  engaged  In  the  war  in  the  Baltic  Sea  for  their 
willingness  to  give  their  utmost  at  all  times. 

For  copy  of  this  directive  of  the  Naval  Staff,  Operations  Di- 
vision (1  Ski.  1  Abt.  52987  g/4l),  in  which  unit  and  personal 
citations  are  given,  see  War  Diary,  file  "Barbarossa". 

b.  From  a  dispatch  to  Field  Marshal  Mannerheim  from 
the  Chief  of  Staff,  Armed  Forces  High  Coriiiand  on  21  Nov.  1941; 

The  Army  High  Command,  Norway  will  be  transferred  n   Ic  to  Oslo 
in  the  beginning  of  January.  A  new  Army  High  Conmu  i   will  be 
created  for  central  and  northern  Finland,  with  Gene  al  Dietl  in 
command.  The  first  task  for  the  new  Army  High  Command  is  the 


_U?-  9862 


♦ 


5  Dec.  19^1  CONFIDENTIAL 

attack  on  Kandalaksha,  which  is  planned  for  March.  Plans  for 
this  operation  call  for  bringing  up  tvo  mountain  divisions  with 
special  equipment.  The  Finns  are  requested  to  make  available 
two  ski  brigades  for  the  attack.  The  command  of  the  southern 
group  for  encirclement,  to  which  a  German  mountain  division  will 
be  assigned,  is  to  be  given  a  Finnish  General,  possibly  the  Com- 
manding General  of  the  III  Army  Corps .  German  air  units  are  ex- 
pected to  participate.  The  clearing  of  Hangoe  and  Odensholm  has 
simplified  transportation  difficulties. 


V.   Merchant  Shipping; 

Brief  Report  No.  53  in  the  report  series  of  the  Naval  Staff,  In- 
telligence Division  under  the  heading  "Foreign  Merchant  Shipping" 
includes  the  following: 

a.  A  list  of  British,  Allied  and  neutral  ships  which  were 
lying  in  French  harbors  at  the  time  the  armistice  with  France 
was  concluded;   the  British  justify  the  seizure  of  French  ships 
by  saying  that  we  have  detained  the  above  mentioned  vessels. 

b.  A  survey  of  the  activities  of  Japanese  merchantmen 
during  the  first  half  of  19^1. 

c.  Other  news. 


VI.  Submarine  Warfare 

1.  Enemy  Situation; 

Lively  air  activity  from  Gibraltar  toward  the  west. 
One  submarine  was  reported.  According  to  an  unconfirmed  Italian 
report,  Britain  has  lost  eight  submarines  during  October  and  has 
asked  the  U.S.  for  the  use  of  eleven  submarines.  Two  U.S.  sub- 
marines are  said  to  be  stationed  in  the  Atlantic. 

2.  .Own  Situation; 

According  to  the  Commanding  Admiral,  Submarines,  Italy, 
submarine  U  "97"  ran  aground  off  Phleva  after  leaving  Salamis. 
Salvage  operations  have  been  started.   (See  Radiogram  0930.) 


VII.  Aerial  Warfare 

1.   British  Isles  and  Vicinity: 

Enemy  air  activity  over  Channel  coast  and  Dutch  coast. 
At  dusk  seven  of  our  planes  attacked  ship  targets.  No  reports 


*3  9^2 


5  Dec.  19*H  CONFIDENTIAL 

of  success.  According  to  a  report  from  5th  Air  Force,  catapult 
ship  FRIESENLAND  was  transferred  to  Tromsoe  to  take  on  a  squad- 
ron of  reconnaissance  seaplanes  BV  138. 

2.  Mediterranean  Theater; 

For  results  of  air  reconnaissance  see  Mediterranean 
Situation.   It  Is  sure  that  13  British  planes  were  shot  down  by- 
Italian  pursuit  planes  on  4  Dec.  The  Italians  were  escorting 
our  air  transports.   One  of  our  planes  is  missing.  Weather  con- 
ditions made  air  support  of  ground  fighting  in  North  Africa  Im- 
possible. The  X  Air  Corps  reports  that  while  attacking  a  British 
cruiser  with  torpedoes,  the  vessel  shot  projectiles  which  explod- 
ed into  a  great  number  of  pieces  over  an  area  of  100  sq.  meters 
when  they  fell. 

3.  Eastern  Front; 

For  results  of  air  reconnaissance  see  Situation  Black 
Sea  and  Baltic  Sea.   Otherwise  nothing  to  report. 


VIII.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation; 

Western  Mediterranean; 

Radio  decoding  of  the  report  from  British  Naval  At- 
tache in  Madrid  to  the  British  Intelligence  Service  regarding 
torpedoing  of  Spanish  steamer  CASTILLO  0R0PESA  off  Melilla  on 
11  Nov.  contains  the  remark  that  the  Spanish  director  of  ship- 
ping is  of  the  opinion  that  an  Axis  submarine  is  responsible 
for  the  torpedoing.   (See  Radio.  Intelligence  Report  1655.) 
Situation  In  Gibraltar  remains  almost  unchanged. 

Central  and  Eastern  Mediterranean; 

Only  light  naval  forces  were  sighted  by  air  reconnait 
sance  off  the  Marmarica  coast.  For  details  see  Radiogram  2000. 
According  to  radio  monitoring,  a  British  convoy  or  vessel  was 
under  attack  off  the  Marmarica  coast  at  0530,  1000  and  1005. 

2.  Special  Items; 

In  order  to  strengthen  our  position  in  the  Mediter- 
ranean and  to  create  a  concentration  of  Axis  fighting  power  in 
the  central  Mediterranean,  the  Fuehrer,  in  accord  with  the  Puce, 
has  ordered  the  following: 

Air  Force  units  no  longer  essential  in  the  East  up  to  one  air  corps 
in  strength  are  to  be  transferred  to  the  areas  of  southern  Italy 
and  North  Africa,  together  with  the  necessary  anti-aircraft  defense 
units. 


.44.  '"" 


5  Dec.  1941  CONFIDENTIAL 

Besides  having  an  immediate  effect  on  the  warfare  in  the  Mediter- 
ranean and  in  North  Africa,  this  action  should  have  a  fundamental 
influence  on  the  entire,  further  development  in  the  Mediterranean 
area. 

The  Fuehrer  entrusted  the  command  of  all  forces  being  concentrated 
for  this  purpose  to  Field  Marshal  Kesselring  and  designated  him 
Commanding  General,  Armed  Forces,  South. 

The  German  naval  forces  on  duty  in  the  central  Mediterranean  re- 
ma  in~lIn^elrThT~command— of  the  Commander  in  Chief,  Navy. 

The  Commanding  General,  Armed  Forces,  South  is  authorized  to  is- 
sue directives  to  the  German  Admiral  at  the  Italian  Admiralty 
and  if  necessary  to  Naval  Group  South  (for  the  eastern  Mediter- 
ranean) in  order  to  execute  the  tasks  assigned  to  him.   Combat  or- 
ders will  be  issued  by  the  naval  offices  in  conformity  with  those 
given  by  the  Commanding  General,  Armed  Forces,  South.  Any  reauest 
by  the  Commanding  General,  Armed  Forces,  South  for  joint  naval 
action  of  the  Axis  forces  is  to  be  submitted  only  to  the  German 
Admiral  at  the  Italian  Admiralty. 

Copy  of  Directive  38  of  Fuehrer  and  Supreme  Commander,  Armed  Forces 
giving  the  above  orders  and  outlining  the  duties  and  command  rela- 
tionships of  the  new  Commanding  General  is  in  War  Diary,  Part  C, 
Vol.  XIV  (l/Skl.  I  op.  2081/41  Gkdos.  Chefs.). 

]5.   Situation  Italy; 

An  enemy  submarine  sank  the  steamer  ERIDANO  on  4  Dec. 
north  of  Cephalonla.  An  enemy  air  raid  on  the  town  of  Villa  San 
Giovanni  (opposite  Messina)  caused  heavy  damage  to  railroads  and 
light  damage  on  the  auxiliary  vessel  LAGOTANA.   Two  of  the  at- 
tacking planes  were  shot  down  by  Italian  pursuit  planes. 

On  25  and  26  Nov.  the  Italian  torpedo  boat  CASTORE  contacted 
and  pursued  an  enemy  submarine  which  had  been  sighted  and  report- 
ed by  a  plane.   The  CASTORE  is  equipped  with  a  German  submarine 
detector  (S-Geraet)  with  which  it  achieved  excellent  results.  The 
enemy  submarine  was  definitely  destroyed  by  depth  charges.   Ital- 
ian planes  could  plainly  3ee  the  wreck  of  the  submarine  68  meters 
under  water.   The  detector  was  operated  by  specialists  from  the 
destroyer  LODY.   The  commanding  officer  of  the  torpedo  boat  was 
trained  in  Gdynia. 

This  victory  clearly  proves  the  value  of  the  support  the  Axis 
partner  obtains  from  the  German  Navy  both  in  personnel  and  ma-- 
teriel . 

4.   Transport  of  Supplies  to  North  Africa; 

The  German  General  at  the  Headquarters  of  the  Italian 
Armed  Forces  forwarded  a  very  pertinent  estimate  of  the  situa- 
tion to  the  Armed  Forces"  High  Command,  Operations  Staff,  Nation- 
al Defense.  Recommendations  from  the  Italian  High  Command  for 
Improvement  of  the  situation  were  enclosed.  He  reported: 


-45- 

"-"  9862 


5  Dec.  19^1  CONFIDENTIAL 

"Combat  fitness  of  German  and  Italian  troops  can  be  maintained 
only  if  fresh  supplies  and  reinforcements  of  all  types  are  forth- 
coming Immediately.  As  long  as  the  British  dominate  the  air  and 
the  sea  in  the  central  Mediterranean,  only  a  small  percentage  of 
what  is  needed  can  be  shipped.  At  present  destroyers  and  subma- 
rine supply  ships  are  helping  out,  but  at  best  they  can  carry  only 
15,000  ton3  per  month  of  the  100,000  tons  which  are  needed.  Bad 
weather  reduces  even  this  figure  by  preventing  destroyers  from 
leaving  port.   Cruisers  could  raise  the  tonnage  only  slightly. 
During  the  last  few  weeks  merchantmen  were  able  to  get  through 
the  blockade  in  only  a  few  instances.   They  need  a  stronger  escort 
by  the  Italian  Navy,  but  the  latter  is  obliged  to  use  her  fuel  oil 
sparingly.  More  planes  are  also  badly  needed  for  escort  and  recon- 
naissance duty.  Air  transports  must  be  used  to  the  greatest  extent 
possible,  but  they  cannot  replace  ships.  Libya  will  not  be  proper- 
ly supplied  until  we  can  again  send  freighters,  independently  or  in 
convoys,  to  North  Africa,  especially  to  Benghazi  and  Tripoli.  Mer- 
chantmen cannot  cross  the  Mediterranean  successfully  during  the  ' 
present  full  moon.  Unless  the  fighting  in  the  Marmarica  lets  up, 
the  Air  Force  will  be  unable  to  carry  out  reconnaissance  and  pro- 
tect shipping  adequately.   Sicily  has  particularly  few  planes  at 
the  moment  because  the  airfields  were  cleared  to  make  way  for  the 
II  Air  Corps.   The  Commanding  General,  Armed  Forces,  South  has 
taken  up  the  problem  of  convoy  protection.  A  regular  schedule  of 
troop  transportation  cannot  be  resumed  until  the  II  Air  Corps  has 
created  the  proper  conditions  for  regular  convoy  traffic  by  keep- 
ing Malta  in  check  and  can  take  over  directly  the  air  protection 
of  these  convoys. 

The  Italian  High  Command  makes  the  following  recommendations  for 
relieving  the  situation: 

a.  Make  greatest  possible  use  of  German  transport  planes. 

b.  If  the  quantity  of  fuel  oil  cannot  be  increased,  speed 
up  the  delivery  of  fuel  oil  which  was  promised. 

c.  Get  II  Air  Corps  into  action  quickly." 

Copy  of  the  above  in  War  Diary,  Part  C,  Vol.  XIV  in  accordance 
with  directive  of  Commander  in  Chief,  Navy  (Ob.d.M.  2071/41 
Gkdos.  Chefs.). 

Convoy  movements  on  5  Dec.  without  incident.   For  details  see 
naval  transport  situation,  Radiogram  1420. 

5.   Area  Naval  Group  South: 

Aegean  Sea: 

Nothing  to  report. 

Black  Sea: 

Enemy  Situation: 

Air  reconnaissance  reveals  no  significant  changes  at 
Sevastopol,  Taman  and  Novorossisk. 


-46-  9862 


4 


5  Dec.  1941  CONFIDENTIAL 

According  to  a  report  from  Army  Group,  the  possibility  exists 
that  the  Russians  will  try  to  land  in  the  rear  of  the  1st  Panzer 
Army,  between  Taganrog  and  Mariupol,  by  way  of  the  Sea  of  Azov. 

Own  Situation: 

For  directive  from  Commander  in  Chief,  Navy  to  Naval 
Group  South  to  assist  the  Southern  Army  Group  in  the  reconnais- 
sance of  possible  enemy  action  across  the  Sea  of  Azov  see  Radio- 
gram 1616. 

t 

Two  new  mines,  presumably  pearl  mines,  were  removed  during 
sweeping  operations  off  Varna  mole.   On  4  Dec.  the  steamer  CAR- 
PATI  was  frozen  fast  east  of  Ochakov  North.  Engineers  are  try- 
ing to  free  her. 


IX.  Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

Supplies  for  the  attack  on  Sevastopol  are  delayed  by 
transportation  difficulties.  Enemy  attacks  on  the  motorized  III 
Army  Corps  began  again  during  the  early  morning.  The  13th  and 
14th  Panzer  Divisions  repulsed  very  heavy  attacks.  The  cold  wave 
is  breaking. 

At  the  17th  Army  sector  a  surprise  attack  of  the  IV  Army  Corps 
with  support  of  the  Italian  Psubio  Division  was  successful  in 
the  direction  of  Lomovatka.  The  enemy  retreated  toward  the 
southeast.  At  the  6th  Army  sector  enemy  patrols  and  holding 
attacks  were  repulsed. 

Central  Army  Group: 

Separate  divisions  of  the  2nd  Army  gained  some  terrain 
toward  the  east.  At  the  sector  of  the  2nd  Panzer  Army,  tempera- 
tures as  low  as  -35°  C  made  fighting  and  use  of  weapons  impossi- 
ble. Many  cases  of  frostbite.  Attacks  on  17th,  3rd  and  4th 
Panzer  Divisions  were  repulsed.   On  the  4th  Army  sector  the  sit- 
uation of  the  southern  flank  of  the  forces  encircling  Moscow  re- 
mained largely  unchanged.  Strong  enemy  attacks,  some  lasting 
all  day,  had  to  be  repulsed  at  many  positions  southwest,  west 
and  northwest  of  Moscow.  Between  16  Nov.  and  3  Dec.  Panzer  Group 
4  took  21,860  prisoners  in  this  sector  and  captured  or  destroyed 
449  tanks  and  264  guns. 

The  anticipated  attack  at  the  9th  Army  sector  east  of  Kalinin 
was  carried  out  by  strong  enemy  forces.   The  enemy  succeeded 
in  crossing  the  Volga  at  several  places,  but  was  thrown  back 
by  counterattacks.  Strong  enemy  concentrations  north  of  Kalinin 
were  destroyed  by  our  artillery.  Enemy  attacks  west  of  Kalinin" 
were  repulsed  by  the  162nd  Infantry  Division. 


-47-  9862 


5  Dec.  1941  CONFIDENTIAL 

Northern  Army  Group; 

The  strong  enemy  attacks  east  of  Tikhvin  are  3 till  In 
progress.  Attacks  in  the  Volkhov  sector  vere  repulsed. 

2.  Finnish  and  Norvegian  Front: 
No  noteworthy  changes. 

3.  North  Africa: 

1  % 

Reinforced  enemy  reconnaissance  detachments  tried  to 
establish  contact  with  the  Pavia  Division  but  did  not  attack. 
Air  reconnaissance  revealed  that  further  reinforcements  for  the 
2nd  South  African  Division  are  being  brought  up  from  western 
Egypt. 

The  state  of  siege  on  the  eastern  front  had  to  be  abandoned  after 
renewed  enemy  attacks  from  Tobruk. 

Parts  of  the  22nd  Guard  Brigade  and  the  4th  Armored  Brigade, 
which  were  stationad  in  the  area  around  Bir  el  Gubi,  were  forced 
back  in  an  attack  by  the  Panzer  Group.  The  Solium  and  Bardia 
fronts  were  held.  Food  supplies  there  are  exhausted.   Supplies 
by  air  and  water  are  insufficient. 


♦*»♦******#**♦♦♦*♦*»#*♦♦♦ 


I 


-48- 


9862 


• 


♦ 


CONFIDENTIAL 

6  Dec.  1941 

Items  of  Political  Importance 

Great  Britain; 

According  to  official  report  there  have  been  no  satisfactory 
answers  to  the  British  demands  from  the  Finnish,  Hungarian  and 
Rumanian  Governments.  These  governments  will  therefore  be  no- 
tified that  a  state  of  war  exists  between  them  and  Britain. 

U.S.A.t 

The  answer  from  the  Japanese  Government  regarding  occupation  of 
Indo-China  states  that  Chinese  troops  recently  showed  signs  of 
activity  at  the  northern  border  of  French  Indo-China.  As  a 
countermeasure  it  was  necessary  to  reinforce  Japanese  troops  to 
a  certain  degree,  causing  troop  movements  also  in  the  southern 
part  of  the  country. 

The  report  signed  by  Chief  of  Staff  Marshall  and  Chief  of  Naval 
Operations  Stark  and  published  by  the  Chicago  Tribune  contains 
the  following  points : 

1.  War  aim  of  the  U.S.  is  total  defeat  of  Germany  and  her 
allies. 

2.  There  are  important  reasons  for  the  U.S.  to  continue 
the  war  until  final  victory,  even  in  case  of  total  defeat  of 
Britain  and  the  Soviet  Union. 

J>.        Strategy  of  the  U.S.  must  provide  for  giving  all  pos- 
sible aid  for  successful  continuation  of  military  operations. 
Finally,  these  operations  will  have  to  be  strengthened  by  active 
U.S.  participation  in  the  war,  Japan  being  kept  in  check  at  the 
same  time. 

4.   Since  the  U.S.  and  her  allies  will  not  be  able  to 
launch  a  military  offensive  against  Germany  in  the  near  future, 
the  economic  blockade  must  be  continued.   In  areas  where  Ger- 
man forces  are  located,  air  and  sea  offensives  must  be  under- 
taken. It  is  particularly  important  that'  any  resistance  move- 
ment in  the  areas  occupied  by  Germany  be  supported. 

Secretary  of  War  Stimson  declared  that  publication  of  this  re- 
port was  the  result  of  gross  indiscretion  and  has  done  great 
harm  to  U.S.  interests. 

Japan ; 

According  to  report  from  Japanese  diplomatic  circles,  the  con- 
ferences with  the  U.S.  are  taking  a  course  unsatisfactory  to 
Japan.  The  U.S.  Government  pbviously  wants  to  gain  time.  Roo- 
sevelt's anyielding  attitude  was  evidently  strengthened  by  the 
Chinese  Government's  threat  that  China  will  anticipate  an  Ameri- 
can-Japanese rapprochement  at  China's  expense  by  a  corresponding 


-49- 


986  2 


6  Dec.  19^1  CONFIDENTIAL 

compromise  of  her  ovn  with  Japan.  Britain  is  watching  very  anx- 
iously the  negative  course  these  negotiations  are  taking.  Future 
developments  are  unpredictable.   The  war  of  nerves  is  so  real 
that  nobody  can  tell  whether  an  armed  conflict  will  develop  from 
or  not. 

The  change  in  the  Japanese  cabinet  has  no  significance  for  for- 
eign policy,  unless  the  appointment  of  a  separate  cabinet  member 
for  the  Overseas  Ministry,  formerly  administered  by  the  Foreign 
Minister,  is  intended  to  lighten  the  work  of  the  latter  in  view 
of  the  international  situation. 

Thailand: 

According  to  diplomatic  reports,  the  situation  in  Thailand  seems 
to  be  rapidly  approaching  a  crisis.   Japanese  troop  movements 
from  the  north  to  southern  Indo-China  lead  to  the  conclusion  that 
the  Japanese  offensive  against  the  Burma  Road  by  way  of  Yunnan 
province  has  been  abandoned  and  that  an  occupation  of  Thailand  is 
planned.   The  pro- Japanese  Prime  Minister  has  also  been  named  Com- 
mander in  Chief  of  the  Armed  Forces.   He  is  of  the  opinion  that 
British  promises  of  aid  are  worthless  and  therefore  has  definitely 
decided  on  collaboration  with  Japan.  Besides,  he  is  said  to  be 
convinced  of  the  victory  of  the  Axis  Powers. 

According  to  report  from  Japanese- informed  circles,  the  time  for 
launching  the  offensive  in  the  south  is  not  dependent  on  the  re- 
sult of  Kurusu's  mission,  which  is  mainly  a  device  to  gain  time. 
The  Japanese  expect  little  or  no  resistance  from  the  Siamese  Armed 
Forces. 


Special  Items; 

I.   Participation  of  the  United  States  in  the  War: 

The  measures  which  the  U.S.  has  taken  for  aiding  Britain  have 
been  in  gross  disregard  of  neutrality.  With  the  change  of  the 
Neutrality  Law  with  respect  to  naval  and  commercial  warfare, 
they  have  now  reached  a  point  where  an  open  declaration  of  war 
cannot  make  any  appreciable  difference.   If,  in  spite  of  these 
facts,  the  basic  policy  of  avoiding  any  incidents  involving  the 
U.S.  is  to  be  followed,  the  war  against  merchant  shipping  no 
longer  offers  any  prospects  of  success.   If  American  ships  are 
able  to  bring  supplies  to  Britain,  even  though  only  as  far  as 
Iceland  or  some  intermediate  port,  without  running  any  risk  of 
submarine  attack,  chances  of  a  successful  war  against  merchant 
shipping  diminish  in  the  same  proportion  in  which  American  ton- 
nage replaces  that  of  the  enemy.   The  fact  remains  that  the  only 
course  with  some  prospect  of  forcing  Britain  to  make  peace  is  at 
present  an  attack  on  her  supply  lines  and  destruction  of  tonnage 
in  her  service.   Therefore  the  Naval  Staff  considers  the  present 
instructions  no  longer  tenable  under  which  the  United  States, 
which  is  in  fact  an  active  participant  in  the  war,  receives  more 
considerate  treatment  than  a  country  which  is  actually  neutral. 


-50- 


9862 


♦ 


6  Dec.  1941  CONFIDENTIAL 

Taking  these  facts  into  consideration,  the  Naval  Staff  proposes 
new  regulations  for  action  against  naval  and  merchant  vessels 
within  and  outside  of  the  blockade  area.  The  Naval  Staff  re- 
news its  demand  for  permission  to  wage  war  within  the  entire  Pan- 
American  Safety  Zone  and  a  directive  is  requested  whereby  enemy 
destination  of  absolute  contraband  will  be  considered  proved  if 
the  goods  are  destined  for  a  country  which  supplies  the  enemy 
contrary  to  its  professed  neutrality. 

For  request  to  this  effect  from  Naval  Staff,  Chief  of  Operations 
Branch.  Deputy  to  Chief  of  Operations  Division  (l/Skl  la  24608/41 
Okdos.)  to  the  Armed  Forces  High  Command,  Operations  Staff;   the 
Armed  Forces  High  Command,  Operations  Staff,  National  Defense; 
the  Armed  Forces  High  Command,  Foreign  Affairs  Division  and  the 
Foreign  Office,  see  War  Diary,  Part  B,  Vol.  XVII. 

II.  Concerning  Readiness  of  the  Destroyers; 

Commander,  Destroyers  reports  the  following  destroyers  ready  for 
duty: 

A.  In  the  Northern  Area: 

1.  Destroyers  Z  "23",  "24",  "25",  "26",  "27",  all  under 
Commander,  8th  Destroyer  Flotilla. 

2.  THEODOR  RIEDEL,  now  in  Bergen,  will  be  available  for 
home  duty  the  end  of  December. 

B.  In  Germany  and  ready  for  action  are: 

1.  Beginning  10  Dec:   JAKOBI 

2.  Beginning  1  Jan.: 

a.  RICHARD  BEITZEN 

b.  HEINEMANN 

C.   HERMANN  SCHOEMANN 

C.  At  the  end  of  January  the  following  will  be  ready  for  duty: 
A  FRIEDRICH  IHN,  Z  "28",  Z  "29". 

D.  Z  "30"  will  be  ready  for  duty  the  second  half  of  March. 

E.  Schedule  of  ships  in  dry  dock: 

1.  STEINBRINK  until  26  Jan. 

2.  LODY  until  16  Feb. 

3.  ECKHOLDT  until  15  Mar. 

4.  OALSTER  until  15  Apr. 

Naval  Group  West  reports  that  transfer  of  destroyers  BEITZEN, 
HEINEMANN,  and  SCHOEMANN  to  the  West  Area  is  planned  for  the  be- 


-51- 

98  6  2 


6  Dec.  1941  CONFIDENTIAL 

ginning  of  January.  However,  Commander,  Destroyers  Is  advised  to 
be  prepared  that  they  might  be  sent  for  on  short  notice  at  an 
earlier  date,  since  their  use  depends  on  the  ice  conditions  in 
the  Baltic  and  North  Sea. 

The  Naval  Staff  orders  that  destroyer  Z  "29"  is  to  be  transferred 
to  the  north  in  order  to  bring  the  number  of  destroyers  there  up 
to  six.  Upon  the  request  of  Naval  Group  West,  four  destroyers 
will  be  transferred  west.  The  fifth  destroyer  will  be  at  the  dis- 
position of  the  Ship  Gunnery  School  from  5  Jan.  to  24  Jan. .  For 
telegram  to  this  effect  as  ordered  by  Naval  Staff,  Operations  Di- 
vision (l/Skl  I  op  2076/41  Gkdos.  Chefsache)  see  War  Diary,  Part 
C,  Vol.  IX. 

III.  Fuel  Oil  Situation: 

A  supplementary  shipment  of  25,000  to  50,000  tons  of  fuel  oil  to 
the  Italian  Navy  Is  necessary  due  to  absence  of  shipments  from 
Rumania  in  the  months  of  November  and  December.  The  German  Navy 
can  expect  47,000  tons  of  fuel  oil  from  home  production  during 
December. 

In  January  and  February  1942  the  German  Navy  also  expects  47,000 
tons  of  f oel  oil  per  month  from  home  production.  Shipments  from 
Rumania  are  expected  to  total  40,000  tons  per  month  for  Germany 
and  Italy  together,  3,000  tons  of  which  will  be  allocated  to  Na- 
val Group  South.  We  may  count  on  slowly  increasing  production 
and  an  increase  in  the  shipments  from  Rumania  beginning  with 
March  1942.  The  maximum  figure  for  Rumanian  exports  may  be  set 
at  85,000  tons  per  month.  Of  the  monthly  Estonian  production 
of  3,500  tons,  the  first  3,000  tons  are  put  at  the  disposal  of 
the  Finnish  Navy  each  month.  For  comprehensive  report  on  the 
fuel  oil  situation  and  directive  to  Naval  Staff,  Quartermaster 
Division  regarding  fuel  oil  shipments  to  Italy  by  Naval  Staff. 
Operations  Division,  Fuel  and  Supply  Section  (l/Skl  Ig  28346/41 
Gkdos.)  see  War  Diary,  Part  C,  Vol.  IX. 

IV.  On  the  basis  of  a  telephone  request,  the  Armed  Forces  High 
Command,  Operations  Staff,  National  Defense  and  the  Fuehrer  Head- 
quarters are  notified  for  Captain  von  Puttkamer  that  the  cranes 
of  HIPPER  and  PR-INZ  ETJGEN  have. a  load  capacity  of  12  tons,  those 
of  the  armored  cruisers  and  the  small  cruisers  a  capacity  of  10 
tons.  Also  the  cruising  range  of  the  PT  boats  in  the  Mediterranean 
was  reported,  with  the  annotation  that  the  use  over  larger  dis- 
tances of  the  five  boats  does  not  depend  so  much  upon  their  cruis- 
ing range  as  upon  their  navigational  inadequacy  and  upon  the  fact 
that  they  possess  only  one  watch.  According  to  the  opinion  of  the 
Naval  Staff,  it  is  hardly  possible  to  use  PT  boats  over  distances 
greater  than  150  to  200  miles.   (See  Radiogram  2121.) 


Situation  6  Dec.  1941 
I.   War  in  Foreign  Waters 
1.   Enemy  Situation! 


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9862 


6  Dec.  19^1  CONFIDENTIAL 

North  Atlantic; 

The  auxiliary  cruiser  CIRCASSIA  vas  at  sea  in  the  area 
off  Canada  on  3  Dec.  Aircraft  carrier  FURIOUS  was  presumably 
also  at  sea  in  the  western  Atlantic  off  the  U.S..   ILLUSTRIOUS 
is  probably  located  between  Bermuda  and  the  U.S..   INDOMITABLE 
was  in  Vest  Indian  waters  on  4  Dec;   she  is  obviously  returning 
to  port. 

South  Atlantic; 

Auxiliary  cruiser  ASTURIAS  arrived  at  Montevideo  on  5 
Dec.  The  press  again  mentions  the  assembly  of  another  convoy. 
The  convoys  which  have  repeatedly  been  reported  from  La  Plata 
were  never  confirmed.  According  to  radio  monitoring  most  of  the 
ships  which  sail  alone  between  the  West  Indies  and  the  Cape  of 
Good  Hope  avoid  the  area  around  Ascension  Island  and  St.  Helena, 
taking  a  route  via  15  S  30  W  and  31  S  10  W.  The  fast  steamers 
EMPRESS  OF  AUSTRALIA,  MAURETANIA  and  NIEUW  AMSTERDAM  were  sight- 
ed in  Capetown  toward  the  end  of  October.  They  were  loaded  with 
troops.  Capetown  and  Durban  are  crowded  beyond  capacity.  The 
ships'  lights  are  dimmed  but  the  towns  themselves  are  not  blacked 
out.  No  mine  fields  are  suspected  outside  of  the  harbors. 

2.   Own  Situation; 

1  '  ■  «  ■  «■'  »■■  ■■  » 

According  to  deciphered  radio  report  from  the  British 
Admiralty  on  2  Dec,  cruiser  DORSETSHIRE  sighted  an  enemy  steamer 
650  miles  northeast  of  Tristan  da  Cunha.  The  enemy  steamer  was 
scuttled  after  DORSETSHIRE  fired  a  warning  shot.  Boats  loaded 
with  fuel  and  supplies  were  lying  alongside.  Survivors  were  not 
taken  aboard  because  of  possible  submarines  in  the  vicinity. 
Later  a  plane  sighted  fifteen  boats  and  one  float.  The  action 
described  was  the  sinking  of  the  submarine  supply  ship  PYTHON. 

According  to  newspaper  reports,  the  Australian  Government  has 
asked  for  a  legal  opinion  about  the  question  whether  the  aux- 
iliary cruiser  C0RM0RAN  is  to  be  treated  as  a  pirate  if  she  opened 
fire  before  hoisting  her  own  ensign. 

This  propaganda  report  cannot  be  said  to  have  serious  significance 

The  rescued  personnel  from  C0RM0RAN  amounts  to  318  men  according 
to  announcement  by  the  Australian  Navy.  All  hope  of  finding  sur- 
vivors from  SIDNEY  has  been  abandoned. 

Report  to  Naval  Attache  in  Tokyo  concerning  fate  of  KOTA  NOPAN, 
SLLVAPLANA,  ship  "16"  and  ship  "4l"  by  Radiogram  1212.  Report 
about  situation  of  the  enemy  by  Radiograms  I836  and  2351*. 


II.   Situation  West  Area 
1.   Enemy  Situation; 

According  to  a  report  of  the  British  Admiralty  on  30 


-53- 


9862 


6  Dec.  19*1  CONFIDENTIAL 

Nov.,  2,840  BRT  were  sunk  out  of  a  convoy  off  Cromer.   The  report 
is  incomplete. 

2.   Ovn  Situation: 

Atlantic  Coast: 

Nothing  to  report. 

Channel  Coast: 

— — — — ^— — —  • 

The  2nd  Minesweeper  Flotilla  had  an  engagement  with 
several  enemy  PT  boats  at  0334  off  Cape  Gris  Nez  while  patrolling 
the  convoy  lanes.   One  enemy  PT  boat  was  destroyed  and  another 
seriously  damaged.  No  loss  or  damage  to  our  own  ships.  A  fuel 
depot  at  Carner  was  shot  into  flames  during  enemy  air  raids  at  noon. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation: 

Cruiser  KENYA  arrived  in  Rosyth,  coming  apparently  from 
the  polar  area.  DUKE  OF  YORK  and  TRINIDAD  held  exercises  with 
airplanes  on  5  Dec.  in  northern  Scottish  waters.  RENOWN  arrived 
at  Scapa  from  the  north.   It  is  surmised  that  RAMILLIES  and  RESO- 
LUTION are  at  Scapa;  RAMILLIES  could  also  be  on  the  northern 
route,  however.  RODNEY  was  still  in  the  Reykjavik  area  on  4  Dec. 

Own  Situation: 

Nothing  to  report. 

2.  Norway : 

Enemy  Situation: 

Radio  telephone  communication  between  the  Norwegian 
land  station  and  British  and  Russian  submarines  off  Hammerfest 
was  further  observed.  Valuable  hints  about  submarine  activities 
were  intercepted.  For  details  see  Radiogram  1715. 

Own  Situation: 

The  operations  staff  of  the  Commanding  Admiral,  Norway 
was  decommissioned  on  5  Dec.  after  transfer  of  duties  to  Admiral, 
Arctic  Ocean.  Destroyers  Z  "23",  Z  "25"  and  Z  "27"  and  TANGA  ar- 
rived in  Tromsoe.  THE0D0R  RIEDEL  and  submarine  U  "578"  have  start- 
ed the  trip  to  return  home  from  Bergen.  The  mines  suspected  in 
Mageroe  Sound  were  confirmed.  During  an  air  raid  on  Petsamo  in 
the  night  of  5  Dec,  a  steamer  was  slightly  damaged  with  small 
loss  of  personnel.  Two  small  vessels  of  the  54th  Minesweeper  Flo- 
tilla were  sunk  on  4  Dec.  off  Kristiansund  North. 


-54-  9862 


6  Dec.  194l  CONFIDENTIAL 

IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

For  result  of  the  interrogation  of  prisoners  from  STALIN 
"by  Commanding  Admiral,  Baltic  Countries  regarding  Russian  occupa- 
tion of  Hangoe  and  other  items,  see  Radiogram  1845  and  War  Diary 
5  Dec.  - 

According  to  further  testimony  by  prisoners,  Hogland  has  been  evac- 
uated. 

2.  Ovn  Situation; 

For  report  about  occupation  of  Odensholm  on  5  Dec.  by 
the  2nd  Company  of  the  Naval  Shock  Troop  Detachment  see  Radiogram 
1215.  About  800  prisoners  were  taken  off  STALIN  on  5  Dec.  An 
equal  number  is  said  to  be  still  aboard.  Twelve  Russian  Army  of- 
ficers were  turned  over  to  the  Finns  for  clearing  land  mines  at 
Hangoe.  The  Commanding  Admiral,  Baltic  Countries  doubts  the  wis- 
dom of  giving  all  the  prisoners  from  STALIN  to  the  Finns  in  view 
of  the  labor  situation  in  the  Estonian  oil  shale  region. 


V.   Submarine  Warfare 

1.  Enemy  Situation: ' 

Lone  cruisers  on  patrol  in  Iceland  area  and  Denmark 
Strait.  South  of  Cape  St.  Vincent,  one  of  our  submarines  pro- 
ceeding south  was  unsuccessfully  attacked  by  a  plane.  Radio 
monitoring  intercepted  news  about  further  aerial  bombing  attacks 
on  two  submarines  with  location  unknown  and  on  one  submarine  in 
the  eastern  Mediterranean.  Both  attacks  were  unsuccessful. 

According  to  Reuter  the  British  Admiralty  announces  the  sinking 
of  submarine  U  "501"  by  two  corvettes.  37  m©n  a*©  said  to  have 
been  taken  prisoner  and  10  drowned.  According  to  press  reports 
the  British  steamer  EMPIRE  ABILITY,  formerly  the  German  UHLENFELS 
(7,603  BRT),  was  sunk  in  the  vicinity  of  the  Canary  Islands,  and 
the  British  steamer  ASHBY  (4,868  BRT)  was  sunk  off  the  Azores, 
both  on  30  Nov. 

2.  Own  Situation: 

There  are  no  reports  from  the  submarines  in  the  North 
Atlantic.  Probable  hits  were  scored  on  a  tanker,  a  freighter 
and  a  destroyer  in  a  submarine  attack  in  the  eastern  Mediter- 
ranean on  a  convoy  en  route  to  Tobruk.  The  destroyer  was  ap- 
parently heavily  damaged. 

Commanding  Admiral,  Submarines  reports  that  there  have  been  no 
reports  from  submarine  U  "206"  (Lt.  Opitz),  since  she  left  St. 
Nazaire  on  29  Nov..  The  submarine  must  be  presumed  lost,  prob- 
ably due  to  a  mine.  Commanding  Admiral,  Submarines  requests  al 


-55- 


9862 


6  Dec.  1941  CONFIDENTIAL 

location  of  more  minesweepers  to  Commanding  Admiral,  Defenses, 
Vest.   (See  Radiogram  1330.) 

The  Naval  Staff  inforas  Commanding  Admiral,  Submarines  that  there 
are  about  800  tons  of  fuel  available  at  "5ernardo"  and  rations 
for  only  about  two  to  three  vessels.  Schedule  for  supplying  sub- 
marines at  "Bernardo"  is  as  follows:   U  "575"  during  night  of  11 
Dec,  U  "574"  during  night  of  12  Dec,  U  "434"  during  night  of 
13  Dec,  and  U  "43"  during  night  of  14  Dec.  See  Radiogram  2210. 

According  to  report  from  German  Naval  Command,  Italy,  it  is  plan- 
ned to  take  over  command  of  submarines  in  the  western  Mediter- 
ranean at  noon  on  8  Dec.   (See  Radiogram  1930.) 

Further  report  on  the  situation  in  War  Diary,  Part  B,  Vol.  IV. 

The  Commanding  Admiral,  Submarines  does  not  believe  that  many  re- 
inforcements and  supplies  are  going  to  the  eastern  Mediterranean 
through  the  Strait  of  Gibraltar.  He  thinks  an  attack  on  Algiers 
and  Oran  improbable.  Therefore  he  is  of  the  opinion  that  the 
center  of  submarine  activity  in  the  Mediterranean  should  be  in 
the  east,  with  ten  ships  constantly  at  sea.  For  the  same  reason, 
Commanding  Admiral,  Submarines  thinks  that  fifteen  submarines  in 
the  Gibraltar  area  simultaneously  are  too  many,  and  he  recommends 
constant  operation  of  only  six  to  eight  submarines  there,  half  of 
them  east  and  the  other  half  west  of  Gibraltar,  thus  using  about 
thirty  six  submarines  in  the  Mediterranean  area. 

Since  the  Commanding  Admiral,  Submarines  does  not  think  the 
North  Atlantic  should  be  stripped  of  all  submarines,  he  requests 
that  the  following  be  used  in  the  North  Atlantic:  all  large 
boats  which  become  ready  for  action  and  which  are  not  suited  for 
operations  in  the  Mediterranean  and  around  Gibraltar;   all  medium- 
sized  submarines  which  are  not  used  in  the  eastern  Mediterranean 
or  in  the  Gibraltar  area;  and  the  submarines  in  use  in  the  North- 
ern Area. 

So  long  as  the  extraordinary  destruction  of  tankers  during  supply 
operations  for  submarines  is  not  solved,  Commanding  Admiral,  Sub- 
marines considers  further  employment  of  surface  vessels  for  sup- 
plying submarines  unwise.   The  first  submarine  tanker  has  been  com- 
missioned.  The  Commanding  Admiral,  Submarines  plans  to  use  her 
with  submarine  packs  in  remote  areas  as  soon  as  she  is  ready  for 
operations.  He  asks  for  permission  to  use  the  area  off  Halifax 
and  Bermuda  for  the  first  operation  of  this  kind,  which  will  be 
possible  by  about  January. 

Naval  Staff  decides  that,  so  long  as  the  situation  in  the  Medi- 
terranean is  not  fundamentally  changed  and  the  enemy  is  forced 
to  use  the  route  through  the  Mediterranean  because  of  the  neces- 
sity for  speedy  and  sufficient  assistance  to  the  Libya  offen- 
sive, neither  the  zones  of  operation  nor  the  number  of  submarines 
being  used  should  be  changed.   The  problem  is  under  constant 
study  by  the  Naval  Staff  and  new  orders  will  be  issued  at  the 
appropriate  time.  Transfer  of  submarines  from  the  Northern  Area 
must  be  refused  in  view  of  the  constant  enemy  convoy  traffic 
there.  Permission  to  use  the  region  off  Halifax  and  Bermuda 
will  be  requested  as  soon  as  the  political  situation  permits. 


-56-  9862 


> 


9862 


6  Dec.  19^1  CONFIDENTIAL 

Central  and  Eastern  Mediterranean: 

Convoy  movements  and  light  enemy  forces  were  reported 
in  several  instances  at  sea  off  Marmarica.  For  details  see 
Radiograms  0900  and  1930.   Only  limited  traffic  was  observed  in 
Palestinian  harbors. 

2.  Situation  Italy: 

According  to  report  from  Benghazi,  two  units,  probably 
a  cruiser  and  a  destroyer,  torpedoed  by  torpedo  planes  between 
Tobruk  and  Marsa  Matruh  on  5  Dec.  at  about  2300.   It  was  not  de- 
termined with  certainty  whether  they  were  sunk.  According  to  a 
deciphered  radio  message  from  the  British  Admiralty  of  2  Dec. 
two  British  cruisers  and  a  destroyer  were  attacked  off  Tobruk  at 
0200  on  1  Dec.  without  success. 

3.  Transport  of  Supplies  to  North  Africa: 

Movements  according  to  plan  and  without  interference. 
The  three  barges  which  were  transferred  from  Tripoli  to  Benghazi 
(the  fourth  one  was  sunk  -  see  War  Diary  5  Dec.)  were  so  batter- 
ed by  the  heavy  seas  that  they  will  not  be  ready  for  service  for 
some  time. 

The  German  Admiral  in  Rome  wrote  to  the  Deputy  Commander  in  Chief, 
Italian  Navy  and  stated  quite  frankly  that  the  conduct  of  the 
Italian  Navy  since  the  arrival  of  the  two  British  cruisers  at 
Malta  and  especially  since  the  beginning  of  the  battle  in  Marmarica 
shows  that  the  repeated  proposals  and  suggestions  of  the  German 
Staff  for  improving  the  supply  situation  and  improving  conditions 
of  naval  warfare  in  the  Mediterranean  have  been  disregarded.   In 
spite  of  the  sacrifices  made,  it  is  apparent  that  the  Italian  ef- 
fort since  the  beginning  of  the  Marmarica  battle  is  no  longer  suf- 
ficient to  meet  the  need.   This  does  not  mean. that  necessarily 
the  entire  fleet  must  be  committed,  but  rather  that  greater  dar- 
ing should  be  shown  in  the  execution  of  the  various  tasks.  To  be 
more  specific,  the  following  points  demand  consideration: 

a.  Mining  operations  in  the  Strait  of  Sicily  and  off  Ben- 
ghazi. 

b.  Action  by  naval  forces  to  destroy  the  cruisers  at  Malta. 

c.  Action  against  enemy  supply  lines. 

d.  Maintenance  of  our  own  supply  transportation. 

e.  The  problem  of  using  the  Libyan  harbors  to  their  full 
capacity  for  unloading. 

For  teletype  copy  of  the  letta/  see  l/Skl  28382/41  Gkdos.  in  War 
Diary,  Part  C,  Vol.  XIII. 

On  the  basis  of  the  report  from  the  German  General  in  Rome  (see 
War  Diary  4  Dec,  Special  Items)  the  Armed  Forces  High  Command 
transmits  the  following  to  the  Italian  High  Command  through  the 


-58-  9862 


6  Dec.  19^1  CONFIDENTIAL 

German  General,  Rome  after  a  conference  at  the  Fuehrer's  Headquar- 
ters : 

The  Armed  Forces  High  Command  has  ordered  all  measures  in  its 
power  to  be  taken  for  the  safe  conduct  of  the  traffic  between 
Italy  and  North  Africa.  A  gradual  improvement  in  the  situation 
can  be  expected,  especially  after  2nd  Air  Force  goes  into  action 
and  light  naval  forces  are  operating  in  increased  numbers.   Only 
when  the  predominance  of  Axis  sea  and  air  power  in  the  central 
Mediterranean  has  been  reestablished  will  it  be  possible  to  make 
renewed  overtures  to  the  French  for  the  use  of  the  harbor  of  Bi- 
zerte.  A  premature  use  of  the  harbor  would  lead  to  undesirable 
intervention  in  French  North  Africa  on  the  part  of  the  British. 
There  are  at  present  no  adequate  French  forces  for  defense  nor 
any  possibility  on  the  part  of  the  Axis  Powers  to  come  to  the  aid 
of  the  French.  The  question  of  advance  shipments  of  foodstuffs 
and  goods  exclusive  of  war  materiel  is  at  present  under  study  by 
the  German  Armistice  Commission  in  collaboration  with  the  Italian 
Armistice  Commission.  At  the  present  time  there  are,  however, 
neither  vehicles  nor  fuel  for  covering  the  distance  from  Bizerte 
to  the  front. 

The  opinion  of  the  Armed  Forces  High  Command  that  the  dominance 
of  the  Axis  Powers  in  the  Mediterranean  can  be  reestablished  is 
most  noteworthy.  The  Naval  Staff  will  be  able  to  refer  to  this 
at  the  proper  time,  once  the  possibility  of  air  action  against 
enemy  naval  forces  exists. 

4.   Area  Naval  Group  South: 

Aegean  Sea; 

Enemy  Situation: 

The  icebreaker  NICOLIAN  left  the  Dardanelles  during  the 
night  of  29  Nov. 

Own  Situation; 

The  auxiliary  vessel  BARLETTA  has  been  sent  to  bring 
another  shipment  of  mines  from  Salonika. 

The  Russian  icebreaker  which  was  torpedoed  off  Castelrosso  by 
Italian  submarines  is  suspected  of  having  shown  Turkish  colors. 
Therefore  the  Commanding  Admiral,  Aegean  Sea  has  proposed  that 
it  be  suggested  to  Ankara  that  Turkish  vessels  should  sail  in 
the  waters  in  question  only  by  day  and  the  Turkish  Government 
should  take  appropriate  measures  to  prevent  misuse  of  the  Turkish 
flag.  This  proposal  supported  by  Naval  Group  South  must  be  re- 
jected by  the  Naval  Staff  since  it  is  impossible  to  prescribe  to 
the  Turks  when  they  may  use  their  own  territorial  waters;  besides, 
the  attention  of  the  Turks  would  only  be  drawn  to  our  own  plans 
by  such  suggestions  regarding  prevention  of  misuse  of  the  flag. 

Black  Sea; 

Enemy  Situation; 

Nothing  to  report. 


-59- 


9862 


6  Dec.  19^1  CONFIDENTIAL 

Own  Situation: 

DELFINUL  departed.   New  mines  were  detected  south  of 
Grigoryevka.   Otherwise  nothing  to  report. 


VIII.  Army  Situation 

1.  Russian  Front: 

Southern  Army  Group: 

Landing  attempts  by  three  enemy  PT  boats  at  Eupatoria 
in  the  Crimea  were  repulsed.  Unsuccessful  enemy  scouting  forays 
south  of  Kerch  with  motor  boats. 

Weak  enemy  attacks  at  the  1st  Panzer  Army  sector  were  repulsed 
off  the  southern  flank.   In  general  the  situation  at  the  17th 
and  6th  Army  sectors  is  unchanged. 

Central  Army  Group: 

Isolated  enemy  attacks  on  the  armies  of  this  group  were 
repulsed.  Some  enemy  penetrations  were  successfully  mopped  up. 

Northern  Army  Group: 

This  army  group  also  had  to  repulse  isolated  enemy  at- 
tacks .  Our  own  counterattack  at  Tikhvin  with  parts  of  the  18th 
Panzer  Division  gained  some  territory  in  the  east. 

2.  Finnish  and  Norwegian  Front: 

All  war  materiel  and  all  means  of  transportation  on 
Hangoe  were  destroyed  or  sunk. 

Otherwise  nothing  to  report. 

5.   North  Africa: 

By  evening,  the  enemy  apparently,  has  not  yet  realized 
that  we  have  abandoned  the  siege  of  Tobruk  from  the  east.  The 
German  Afrika  Korps  could  not  continue  its  attack  until  after- 
noon since  the  Gambara  Corps  was  very  slow  in  moving  up.  The  area 
immediately  northwest  of  Bir  el  Gubi  was  reached. 


************************* 


-60- 

9862 


♦ 


CONFIDENTIAL 
7  Dec.  19^1 

Items  of  Political  Importance; 

This  evening  it  became  known  that  Japanese  Armed  Forces  have 
opened  hostilities  against  the  U.S.A.  and  Britain.  The  attacks 
on  the  U.S.  bases  in  the  Pacific  and  against  Singapore  were  a 
complete  surprise.  At  the  same  time  as  hostilities  were  opened, 
Kurusu  and  Nomura  went  to  the  White  House  to  hand  a  note  from 
the  Japanese  Government  to  Secretary  of  State  Hull,  stating  that 
there  is  no  use  to  continue  the  conferences. 

With  this  the  hitherto  impenetrable  veil  has  fallen  from  Jap- 
anese policy.  A  clear  and  sober  estimate  of  its  own  situation 
has  caused  a  government  unafraid  of  making  decisions  and  tak- 
ing responsibilities  to  throw  the  sword  onto  the  scales  while 
there  is  still  time.  It  acted  without  hesitation  or  scruple 
and  before  the  future  strength  of  the  opponent  would  make  the 
inevitable  recourse  to  weapons  an  unsupportable  risk.  Roose- 
velt has  lost  his  political  game.  The  methods  of  provocation 
and  procrastination  with  which  he  tried  to  control  the  law  of 
action  have  been  struck  from  his  hands  for  good.  Now  he  has  the 
war  which  he  always  wanted,  but  at  a  time  and  under  circumstances 
that  were  not  included  in  his  calculations. 

It  remains  to  be  seen  what  immediate  repercussions  this  event 
will  bring  about.  Undoubtedly  few  nations  will  stay  out  of 
this  war  in  which  all  the  great  powers  are  now  involved.  The 
new  order  of  things  can  therefore  become  a  general  one;   this 
depends  entirely  on  the  success  of  the  weapons,  the  ability  of 
the  various  leaderships  and  the  stamina  of  the  peoples  involved. 
Therefore  the  day  of .7  Dec.  19^1  marks  not  only  the  beginning 
of  a  new  chapter  in  the  history  of  war,  but  also  opens  an  unob- 
structed global  and  supra-continental  view  of  the  future  world 
order.  The  extension  of  this  struggle  to  the  seven  seas  and  the 
participation  in  it  of  a  third  great  sea  power  will  cause  every 
last  European  to  realize  the  importance  of  overseas  communica- 
tions and  sea  power.  It  is  that  much  more  painful  for  the  Naval 
Staff  that  the  German  Navy  cannot  be  the  one  to  deal  the  deci- 
sive blows  whose  historical  significance  is  being  felt  already. 
For  the  Navy,  the  war  with  England  began  five  years  too  soon  in 
regard  to  materiel.  For  this  reason  the  Navy  is  not  even  in  a 
position  to  exploit  decisively  in  the  Atlantic  and  the  Mediter- 
ranean the  great  advantage  which  the  war  in  the  Pacific  brings. 


Situation  7  Dec.  19*U 
I.   War  in  Foreign  Waters 
1.   Enemy  Situation; 
North  Atlantic; 


According  to  a  Spanish  report  from  Algeciras,  the 


-61- 


9862 


7  Dec.  19^1  CONFIDENTIAL 

RANGITATA  is  supposed  to  be  carrying  the  relieved  "Black  Watch" 
regiment  to  England.   This  news  again  would  indicate  that  she  will 
leave  Gibraltar  in  a  westerly  direction  (cf.  War  Diary  5  Dec.  and 
6  Dec. ) . 

Pacific ; 

Hostilities  between  the  U.S.A.,  Britain,  and  Japan  be- 
gan in  the  afternoon.  For  further  details  see  Situation  East 
Asia. 

2.   Own  Situation: 

Radio  decoding  deciphered  a  message  from  the  radio 
station  at  Slangkop  reporting  that  survivors  of  the  German  ship 
PYTHON  which  was  sunk  south  of  St.  Helena  are  in  fifteen  life- 
boats, and  that  they  are  probably  armed  and  accompanied  by  sub- 
marines.  For  this  reason  Allied  vessels  should  steer  clear  of 
them;   in  case  they  are  sighted,  they  should  be  reported  by  radio 
at  once.   Report  about  the  enemy  situation  by  Radiogram  1400. 


II.   Situation  West  Area 

1 .  Enemy  Situation; 

Air  reconnaissance  sighted  a  group  of  four  steamers  off 
Land's  End  on  eastward  course.  According  to  radio  monitoring,  a 
convoy  probably  passed  the  Straits  of  Dover  during  the  night  on  a 
westerly  course.  A  British  merchantman  of  2,330  BRT  was  sunk  by 
aerial  torpedo  3  miles  southwest  of  Cardiff  the  afternoon  of  3 
Dec. 

2.  Own  Situation; 

Atlantic  Coast; 

The  Naval  Staff  replies  in  the  negative  to  the  question 
from  Group  West  as  to  whether  submarine  escort  is  available  for 
BENKO,  which  will  be  ready  to  leave  within  the  next  few  days. 

No  reports  of  damage  from  the  enemy  air  raids  on  Brest  between 
1905  and  2225  have  been  received  so  far. 

Channel  Coast: 

— — — — — — —     * 

No  reports  of  damage  due  to  enemy  air  activity  in  the 
Zeebrugge  and  Dunkirk  region  in  the  afternoon  and  early  evening. 


III.  North  Sea,  Norway,  Arctic  Ocean: 


•62- 

»862 


• 


7  Dec.    19^1  CONFIDENTIAL 

1.  North  Sea: 

Enemy  Situation: 

According  to  radio  monitoring,  a  British  tanker  of 
6,968  BRT  was  sunk  by  a  mine  on  2  Dec.  southeast  of  Loves  toft. 
Probably  a  success  to  be  attributed  to  the  4th  PT  Boat  Flotilla. 

Own  Situation: 

Convoys  handicapped  by  bad  weather.  Salvage  operations 
on  steamer  KAI  temporarily  discontinued. 

2.  Norway : 

Enemy  Situation: 

One  icebreaker  of  500  to  800'  tons  and  three  freighters 
of  approximately  6,000  BRT  each  arrived  on  6  Dec.  in  the 
Rabocheostrovsk  Harbor.  A  channel  in  the  ice  is  open,  running 
northeast  from  the  harbor.  Air  reconnaissance  reports  the  White 
Sea  frozen  over  as  far  as  they  could  see.  A  submarine  was  sighted 
off  Kirkenes  on  7  Dec.  and  was  shelled  from  land.  The  ship  re- 
turned fire  but  without  success.   Off  the  entrance  to  Petsamo 
Fjord  two  Russian  submarines  were  both  sighted  and  located  by 
sound  detection. 

Own  Situation: 

The  8th  PT  Boat  Flotilla  was  delayed  in  its  voyage  north 
because  of  bad  weather.  Three  mines  were  swept  at  the  western 
exit  of  Mageroe  Sound.  Because  of  increased  danger  from  the  enemy 
and  because  of  the  unfavorable  phase  of  the  moon,  the  TANGA  convoy 
is  not  scheduled  to  proceed  from  Tromsoe  to  Kirkenes  outside  of 
the  inter-island  route  until  10  Dec.  Unsuccessful  enemy  bombing 
of  escort  torpedo  boat  DIEDENH0FEN  off  Ekeroe  and  Feistein.   One 
attacker  was  shot  down. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 

The  Norwegian  steamer  STANDART  was  heavily  damaged  by  a  ground 
mine  off  Oslo.  Defense  measures  have  been  instituted.  Four 
torpedo  mines  Type  B  were  laid  in  the  Kronstadt  channel.  The 
shipping  lane  to  Riga  has  been  declared  open  to  navigation  with- 
out depth  limit. 


V.   Submarine  Warfare 

1.   Enemy  Situation: 

According  to  an  Italian  report,  two  groups  of  mine- 


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9862 


7  Dec.  1941  CONFIDENTIAL 

sweepers  with  air  escort  are  engaged  In  chasing  submarines  off 
Gibraltar.   The  groups  operate  separately  by  day  and  together  by 
night. 

2.   Own  Situation; 

Report  In  War  Diary,  Part  B,  Vol.  IV. 

The  Italians  have  reported  their  plan  to  transfer  their  submarines 
which  have  been  operating  in  the  Atlantic  to  the  Mediterranean  for 
transport  purposes  as  soon  as  the  current  special  task  (rescue  of 
the  survivors  from  ship  "16"  and  PYTHON)  under  direction  of  the 
Commanding  Admiral,  Submarines  is  finished.   The  German  Naval  Com- 
mand, Italy  and  the  Commanding  Admiral,  Submarines  are  directed  to 
assist  the  transfer  which  is  endorsed  by  the  Naval  Staff.  Armed 
Forces  High  Command,  Operations  Staff,  National  Defense  is  advised 
of  this  (see  Radiogram  1212). 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

A  steamer  of  2,500  BRT  was- damaged  off  Dundee  by  armed 
reconnaissance.   Thirty  planes  laid  mines  in  the  Humber  during 
the  evening;   three  attacked  ship  targets  but  without  success. 
Enemy  air  activity  with  thirty  five  planes  in  the  area  Wesel- 
Wuppertal- Trier-Luxemburg  without  noteworthy  damage. 

2.  Mediterranean  Theater; 

On  6  Dec.  planes  of  the  nightfighter  group  in  Sicily 
attacked  a  large  transport  steamer  of  12,000  to  15,000  BRT  120 
miles  northwest  of  Benghazi.   They  made  three  direct  hits  but 
could  not  observe  the  effect  because  of  enemy  defense.   Recon- 
naissance on  7  Dec.  noted  numerous  capsized  rubber  boats,  ship 
wreckage  and  two  corpses  in  civilian  clothes  at  the  scene  of  the 
attack.  Continuous  attack  with  twenty  seven  planes  on  Tobruk  in 
the  night  of  6  Dec.  in  order  to  prevent  enemy  unloading  operations. 

At  1040  German  air  reconnaissance  sighted  an  enemy  force  of  two 
cruisers  and  one  destroyer  200  miles  northwest  of  Benghazi. 
Bomber  Group  606  attacked  at  1043,  1339  and  1620  and  achieved 
two  direct  hits  on  a  cruiser  in  the  third  attack.  A  flame  and 
then  a  column  of  fire  was  seen  on  the  cruiser,  which  afterwards 
followed  the  rest  of  the  formation  with  decreased  speed  into  the 
distance.  At  1805  Bomber  Group  606  made  three  direct  hits  on  a 
steamer  of  12,000  BRT,  160  miles  northwest  of  Benghazi.   Own  dif- 
ficulties prevented  observations  of  results. 

According  to  radio  monitoring,  the  British  transport  SOMERSETSHIRE 
reported  enemy  air  attack  at  1630  north  of  Solium  and  thereafter 
sent  SOS. 


-64- 

986  2 


7  Dec.  19*U  CONFIDENTIAL 

J>.       Eastern  Front; 

Nothing  to  report. 


VII.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation: 
Western  Mediterranean; 
Nothing  to  report. 

Central  and  Eastern  Mediterranean; 

According  to  Italian  report  from  Cyprus,  the  entire 
British  Mediterranean  Fleet  is  at  sea  between  the  Ionian  Sea  and 
Africa.  Radio  monitoring  on  6  Dec.  in  the  evening  confirms  that 
the  High  Command  of  the  Mediterranean  Fleet  is  at  sea,  presumably 
for  protection  of  convoys  en  route  east  from  the  central  Mediter- 
ranean. 

According  to  air  reconnaissance,  probably  tvo  groups  of  light. na- 
val forces  were  at  sea  north  and  northwest  of  Benghazi.   They 
were  sighted  repeatedly  between  Benghazi  and  Malta.  At  noon  Ital- 
ian planes  sighted  a  battleship  northeast  of  Tobruk,  proceeding  in 
westerly  direction,  and  at  1600  in  the  same  area  a  heavy  cruiser 
accompanied  by  five  destroyers  proceeding  north-northeasterly  at 
20  knots. 

Radio  monitoring  intercepted  reports  of  air  attacks  from  British 
ships;   one  of  these  reports  came  from  transport  SOMERSETSHIRE 
(see  Aerial  Warfare ) . 

At  1700  a  cruiser  was  sighted  in  Tobruk. 

2.  Situation  Italy; 

A  report  belatedly  tells  of  the  sinking  of  a  submarine 
by  the  torpedo  boat  SIRTORI  on  5  Dec.  The  submarine  made  an 
earlier  but  unsuccessful  attack  on  the  convoy  off  Capo  Armi 
(Calabria).  Likewise  torpedo  boat  PARTHENOPE  reported  a  subma- 
rine chase  off  Tagiura  on  5  Dec,  in  the  course  of  which  a  loud 
underwater  explosion  occurred  and  a  heavy  oil  spot  appeared,  so 
that  a  mine  hit  on  the  submarine  is  suspected.   Submarine  TRICHESO 
reported  an  attack  on  four  enemy  cruisers  and  two  destroyers  on 
50  Nov.,  90  miles  northeast  of  Tripoli.  Results  were  not  ob- 
served. Two  torpedo  boats  and  two  Italian  PT  boats  of  the  harbor 
patrol  flotilla  (MAS)  were  lying  in  wait  in  the  Strait  of  Sicily 
the  night  of  6  Dec. 

3.  Transport  of  Supplies  to  North  Africa; 

Departure  of  cruiser  CADORNA  from  Taranto  and  torpedo 


-65- 

9862 


7  Dec.  19^1  CONFIDENTIAL 

boat  ORSA  from  Suda  were  postponed  because  enemy  vessels  vere 
sighted.  All  other  transport  movements  according  to  plan.   Steam- 
ers ANKARA  and  ISEO  are  scheduled  to  proceed  to  Benghazi  from 
Taranto  and  Argostoli  respectively  on  8  Dec.  to  11  Dec.  Battle- 
ship DUILIO,  two  cruisers  and  eight  destroyers  have  been  assigned 
to  escort  them  beginning  10  Dec,  1400  to  within  40  miles  of 
Benghazi. 

4.   Area  Naval  Group  South; 

Aegean  Sea; 

Enemy  Situation; 

Submarine  sighted  off  the  Gulf  of  Suda. 

Ovn  Situation; 

Unsuccessful  enemy  submarine  attack  on  steamer  3ELL0NA 
in  Gulf  of  Suda.   Net  barrage  unit  left  Piraeus  for  Suda.   So 
far  no  success  in  the  attempts  to  tow  U  "97"  lying  off  Phi eve. 
Submarine  U  "371"  has  been  substituted  for  U  "97"  to  patrol  the 
Dardanelles  region.   The  13th  Coastal  Defense  Flotilla  consist- 
ing of  six  ships  was  commissioned  on  23  Nov. 

Black  Sea; 

Enemy  Situation; 

Air  reconnaissance  reported  a  gunboat  in  the  Kerch 
Strait  at  0900;   a  destroyer  off  Sevastopol;   sixteen  merchant- 
men in  Sevastopol;   and  seven  sailing  vessels  in  the  Kerch  Strait. 
No  courses  were  given  for  the  latter. 

Own  Situation; 

The  steamer  CARPATI  is  being  unloaded  in  Ochakov 
North,  with  the  aid  of  makeshift  equipment.  Three  icebreakers 
are  being  employed  to  make  a  navigational  channel.   The  steamer 
TISSA  is  frozen  fast  at  Nikolayev.   Traffic  on  the  Bug  River  is 
now  impossible. 


VIII.  Situation  East  Asia; 

Hostilities  between  Japan,  U.S.A.  and  Britain  began  in  the  after- 
noon of  7  Dec.  with  a  surprise  attack  by  the  Japanese. 

The  following  locations  were  attacked  according  to  reports  so  far 
received:   Honolulu,  Pearl  Harbor,  Wake,  Guam,  Manila  and  Singa- 
pore. 

In  Shanghai  the  Japanese  occupied  the  part  of  the  International 
Settlement  which  is  situated  on  the  waterfront.   The  attack  on 


-66- 


yi  t  : 


7  Dec.  19^1  CONFIDENTIAL 

Hawaii  is  said  to  have  caused  considerable  destruction  and  losses. 

A  series  of  wholly  unconfirmed  and  hasty  radio  reports  gives  the 
following  view  of  the  situation  which  is  as  yet  unconfirmed  in  all 
instances:  a  naval  battle  is  said  to  be  under  way  in  the  Hawaiian 
area,  probably  involving  a  Japanese  aircraft  carrier.  The  U.S. 
battleship  OKLAHOMA  is  said  to  have  been  set  afire  and  the  WEST 
VIRGINIA  sunk.   The  Japanese  aircraft  carrier  is  supposed  to  have 
been  lost  too.   (Cf.  War  Diary  2  Dec.  regarding  a  Japanese  force 
of  sixteen  units  on  south  course  off  the  Japanese  mandated  islands). 
Two  British  cruisers  are  said  to  have  been  sunk  during  the  air  at- 
tack on  Singapore.  Landing  attempts  by  the  Japanese  are  supposed 
to  be  under  way  in  the  vicinity  of  Singapore.  Further  reports 
tell  that  Wake  is  already  in  Japanese  hands  and  that  Guam  will  be 
taken  by  the  Japanese  within  a  short  time. 


IX.  Army  Situation 

1 .  Russian  Front: 

Southern  Army  Group: 

No  change  in  the  Crimean  situation.  Movements  on  the 
1st  Panzer  Army  sector  lead  to  the  conclusion  that  the  enemy  is 
preparing  a  new  attack.   Isolated  enemy  attacks  were  repulsed  on 
the  17th  and  6th  Army  sectors.  The  111th  Infantry  Division  ad- 
vanced to  the  vicinity  of  the  railroad  station  of  Debaltsevo. 
Temperatures  down  to  -50°  Centigrade. 

Central  Army  Group: 

On  the  2nd  Army  sector,  the  9th  Panzer  Division  reached 
Marmuji  on  the  advance.  Enemy  attacks  were  repulsed  on  the  other 
sectors.   Severe  casualties  due  to  the  cold  at  temperatures  down 
to  -58°  Centigrade.  Enemy  attacks  of  increasing  strength  against 
the  2nd  Panzer  Army  in  the  south  and  the  4th  and  9th  Army  west 
and  north  of  Moscow.  They  forced  us  to  withdraw  our  front  lines 
in  several  places,  and  penetrated  our  lines  at  Kalinin. 

Northern  Army  Group: 

Enemy  attacks  had  to  be  repulsed  on  the  various  sectors 
along  the  entire  front  of  the  Army  Group. 

2.  Finnish  and  Norwegian  Front: 
No  important  events. 

3.  North  Africa: 

There  are  no  reports  from  General  Rommel  about  events 
on  7  Dec.  According  to  a  report  from  Lt.  Colonel  Monsezerolo 
who  was  sent  to  the  Cyrenaica  by  the  Italian  High  Command,  Gen- 


7  Dec  19*U  CONFIDENTIAL 

eral  Rommel  i3  forced  to  retreat  to  the  Ain  El  Gazala  position  "be- 
cause of  his  own  heavy  losses  and  the  numerical  superiority  of  the 
enemy . 

The  Savona  Division  received  orders  to  withdraw  to  Bardia. 


**#♦*»♦♦#*♦♦♦*♦♦**♦*»**** 


-68~  9862 


CONFIDENTIAL 

8  Dec.  1941 

Items  of  Political  Importance 

Far  East; 

After  receipt  of  the  Japanese  note,  Secretary  of  State  Hull  de- 
clared that  never  In  his  whole  political  life  had  he  seen  a  doc- 
ument so  full  of  infamous  lies  and  distortions.  He  3aid  he  vould 
never  have  believed  a  government  could  even  be  capable  of  sending 
such  a  note  at  all. 

The  Japanese  Government  published  a  declaration  to  the  effect  that 
Japan  considers  herself  at  war  with  the  U.S.  and  Great  Britain  as 
of  0600  on  8  Dec.  19^1  Japanese  time,  I.e.  7  Dec.  19^1,  2200  Cen- 
tral European  time. 

The  President  of  the  United  States  ordered  total  mobilization. 
All  American  Republics  were  notified  of  the  Japanese  attack. 

The  Governments  of  the  Dutch  East  Indies,  Canada,  and  Costa  Rica 
have  officially  declared  war  on  Japan.  A  session  of  both  houses 
of  the  British  Parliament  is  scheduled  for  noon,  at  which  time 
the  British  Government  will  undoubtedly  announce  the  British 
declaration  of  war  against  Japan. 

NQthing  definite  is  known  at  present  concerning  the  official  at- 
titude of  the  Government  of  Thailand.  However,  it  is  said  that 
the  troops  have  received  orders  to  retreat  from  the  eastern  bor- 
der and  that  British  ships  are  forbidden  to  use  the  territorial 
waters  of  Thailand.  Thus  Thailand  has  joined  the  Japanese  to  all 
intents  and  purposes . 

Japanese  troops  have'  occupied  the  entire  shore  area  of  the  Inter- 
national Settlement  in  Shanghai. 

The  German  News  Agency  (DNB)  reported  the  following  from  New  York 
concerning  the  effect  of  the  outbreak  of  war  on  relations  be- 
tween the  U.S.  and  Germany:  according  to  a  letter  from  Secretary 
of  State  Hull,  the  U.S. -German  treaty  ratified  on  25  January  1929 
is  still  in  force;  this  treaty  stipulates  that  both  countries 
pledge  themselves  not  to  undertake  any  warlike  acts  against  each 
other  or  to  declare  war  on  one  another  without  first  submitting 
their  disputes  to  a  permanent  international  body  for  mediation. 

It  is  hardly  conceivable  that  the  government  of 
the  U.S.  seriously  expects  adherence  to  the  terms 
of  this  treaty  in  view  of  the  present  situation. 

U.S.A. : 

For  further  discussion  of  the  publication  of  the  secret  report 
of  the  U.S.  General  Staff  by  the  Chicago  Tribune,  based  on  a 
diplomatic  report,  see  Political  Review  No.  288,  Paragraphs  6a 
and  b.  Particular  attention  is  drawn  to  the  detached  manner  in 


-69- 

7  9862 


8  Dec.  1941  CONFIDENTIAL 

which  the  U.S.  High  Command  reckons  with  the  elimination  of  Soviet 
Russia  as  a  fighting  power  in  summer  1942  at  the  latest  and  the 
collapse  of  the  British  Empire. 

Great  3ritain; 

According  to  press  reports,  the  British  Government  has  communi- 
cated to  the  Governments  of  Finland,  Hungary,  and  Rumania  that 
she  considers  herself  at  war  with  these  countries  as  of  7  Dec. 
19^1. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

I.  It  will  again  be  possible  to  use  the  heavy  cruisers  ADMIRAL 
SCHEER  and  LUETZOW  for  warfare  in  foreign  waters  due  to  the 
change  in  the  situation  brought  about  by  the  outbreak  of  war  in 
the  Pacific.   The  Chief,  Naval  Staff  intends  to  discuss  this  prob- 
lem with  the  Fuehrer.   The  operations  planned  for  the  auxiliary 
cruisers  should  certainly  be  made  easier  by  the  new  situation. 

II.  The  Chief,  Naval  Communications  Division  reports  about  coop- 
eration with  Japan  in  the  field  of  communications,  which  will 
consist  mainly  in  making  the  results  of  our  observations  available 
to  Japan.  The  Chief,  Naval  Ordnance  Division  points  out  that  the 
aid  we  can  give  to  Japan  with  respect  to  weapons,  etc.,  must  neces- 
sarily be  limited  because  of  difficulties  in  transportation.  The 
Chief,  Naval  Staff  remarks  that  as  a  matter  of  principle  every- 
thing possible  must  be  done  to  aid  our  ally,  the  Japanese  Navy. 

III.  The  Chief,  Naval  Staff  orders  a  court-martial  investigation 
of  the  serious  irregularities  which  became  apparent  at  the  Wil- 
helmshaven  shipyards  during  work  on  the  destroyer  JAKOBI. 

IV.  Report  by  the  Chief,  Naval  Ordnance  Division  about  currency 
difficulties  in  Rumania.  As  a  result  of  these  difficulties  the 
Rumanian  Government  will  make  no  deliveries  to  Germany  unless 
payment  is  made  in  gold  or  foreign  currency.  This  explains  the 
pres_*  .  critical  fuel  oil  situation. 

V.  According  to  a  report  from  the  Chief,  Naval  Staff,  Quarter- 
master Division,  all  minesweepers  and  PT  boats  scheduled  for  the 
Mediterranean  have  either  arrived  at  their  ports  of  destination 
or  are  en  route . 

VT.   The  Chief,  Naval  Staff  directs  that  preparations  should  be 
made  at  once  for  overland  transfer  of  five  small  submarines  to 
the  Black  Sea,  without  regard  to  doubts  voiced  about  the  advis- 
ability of  the  operation. 

VII.  The  Chief,  Naval  Staff  agrees  with  the  Chief,  Naval  Ord- 
nance Division  that  it  would  be  wise  to  permit  the  French  to  com- 
plete construction  of  the  battleship  CLEMENCEAU.  This  measure 


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8  Dec.    19^1  'CONFIDENTIAL 

has  no  practical  significance  in  view  of  the  raw  material  situa- 
tion, but  could  be  regarded  as  having  political  trading  value  for 
demands  of  our  own. 

VIII.  The  Chief,  Naval  Ordnance  Division  reports  a  directive  from 
the  Fuehrer  regarding  conservation  of  non-ferrous  metals  in  view 
of  the  now  inevitable  prolongation  of  the  war. 

IX.  Naval  Staff,  Chief  of  Operations  Branch  reports  concerning 

the  ship  construction  program  in  Italian  shipyards  that  according  to 
the  Naval  Liaison  Officer  with  the  Armed  Forces  High  Command, 
the  Fuehrer  is  considering  handing  this  project  over  to  the  Todt 
Ministry  if  the  authorities  now  in  charge  do  not  get  some  practi- 
cal results  soon.  At  the  moment  a  Fuehrer  directive  can  be  ex- 
pected, however,  turning  over  the  execution  of  the  program  to  the 
Navy.  The  Chief,  Naval  Staff  renewed  his  earlier  directions  for 
collecting  iron  for  ship  construction  in  the  captured  Black  Sea 
ports . 

X.  On  the  basis  of  observations  made  during  his  recent  in- 
spection trip  in  the  West  Area,  the  Chief,  Naval  Staff  orders 
that  plans  be  drawn  up  for  acceleration  of  PT  boat  construction. 
Construction  of  these  boats  should  have  the  same  priority  as  that 
of  submarines.  The  PT  boats  are  to  be  treated  like  the  submarines 
also  in  regard  to  personnel.  The  Commanding  Admiral,  Defenses, 
West  considers  it  possible,  though  hazardous,  to  get  a  cruiser 
through  the  Channel  once.  But  it  is  utterly  impossible  in  the 
case  of  battleships. 

The  Chief,  Naval  Staff  orders  an  investigation  within  the  Navy 
of  the  organizational  setup  of  the  PT  boats  and  torpedo  boats, 
without  participation  of  outside  authorities.   It  is  the  opinion 
of  the  Chief,  Naval  Staff  that  the  PT  boats  are  sufficiently  im- 
portant to  merit  creation  of  an  independent  fleet  command. 


Special  Items : 

I.   Concerning  the  Commitment  of  Forces; 

The  Naval  Staff  confirms  to  the  Armed  Forces  High  Command,  Oper- 
ations Staff,  National  Defense  the  proposals  made  by  telephone  by 
the  Naval  Staff,  Foreign  Affairs  Section  concerning  new  regula- 
tions for  the  commitment  of  forces.  The  following  orders  are  re- 
garded as  sufficient: 

t 

1.  All  orders  limiting  warfare  in  the  blockade  regions  are 
rescinded,  with  the  exception  of  those  applying  to  traffic  be- 
tween Goeteborg  and  South  America. 

2.  Naval  and  merchant  vessels  of  the  United  States,  as 
well  as  those  of  Central  and  South  American  countries  aligning 
themselves  with  the  United  States,  are  to  be  treated  the  same  as 
British  ones. 


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8  Dec.  19^1  '  CONFIDENTIAL 

3.  Contraband  regulations  apply  to  U.S.  territory  (includ- 
ing Chiang  Kai  Shek  China?)  and  to  territory  of  American  countries 
which  align  themselves  with  the  United  States. 

4.  The  Pan-American  security  zone  and  the  territorial  waters 
of  the  United  States,  etc.,  are  no  longer  to  be  respected. 

It  is  pointed  out  that  Paragraph  3  constitutes  a  state  of  war  ac- 
cording to  international  law.   If  war  is  not  formally  declared, 
Paragraph  3  should  be  made  known  to  neutral  nations . 

II.  Concerning  the  Aircraft  Carrier  GRAF  ZEPPELIN t 

Acting  on  the  suggestion  by  the  Chief  of  the  Naval  Staff,  the 
Fuehrer  has  announced  that  he  desires  construction  of  the  air- 
craft carrier  GRAF  ZEPPELIN  to  continue.  He  believes  that  the 
Air  Force  will  be  able  to  convert  planes  for  this  purpose,  since 
final  models  of  special  carrier  planes  will  not  be  ready  before 
the  end  of  19^4  at  the  earliest.  The  Naval  Staff  Operations  Di- 
vision therefore  asks  the  General  of  the  Air  Force  at  the  High 
Command,  Navy,  the  Air  Ministry,  and  the  Commander  in  Chief,  Air 
for  clarification  of  the  situation  arising  from  the  decision  of 
the  Fuehrer.  Corresponding  letter:  l/Skl  28173/^1  Gkdos.  in 
War  Diary,  Part  C,  Vol.  V. 

III.  Meeting  of  the  Commander  in  Chief,  Navy  and  Admiral  Riccardi; 

Respecting  the  urgent  reasons  advanced  by  Admiral  Riccardi,  the 
Commander  in  Chief,  Navy  agrees  to  postpone  the  meeting  which  was 
to  have  taken  place  in  Garmisch  on  11  and  12  Dec.  The  Commander 
in  Chief,  Navy  proposes  setting  a  new  date  for  the  meeting  in 
January  19^2,  after  the  intended  operations  have  been  concluded. 

The  Italian  Admiralty  Staff  had  asked  for  a  postponement  of  the 
meeting  because  intended  operations  in  the  Mediterranean  demand 
Admiral  Riccardi 's  presence  in  Rome. 


Situation  8  Dec.  19^1 

I.   Var  in  Foreign  Waters 

1.   Enemy  Situation: 

North  Atlantic: 

According  to  deciphered  radio  messages,  VARSPITE  was 
still  in  the  U.S.  on  3  Dec,  BERWICK  was  at  sea  off  northern 
Scotland  on  7  Dec,  and  HAWKINS  reported  a  position  west  of  the 
Azores  on  2k   Nov. 

South  Atlantic: 

The  U.S.  destroyer  CLEMSON  arrived  in  Pernambuco  on 
6  Dec.  According  to  radio  deciphering,  a  British  heavy  cruiser, 


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8  Dec.  19^1  CONFIDE  JIT  IAL 

probably  SHROPSHIRE,  was  located  in  the  Middle  Atlantic  en  route 
to  Freetown.  At  the  same  time  DEVONSHIRE  was  west  of  St.  Helena 
and  CARNAVON  CASTLE  was  northwest  of  Capetown. 

Indian  Ocean; 

According  to  an  Italian  report,  steamers  loaded  with 
troops  and  war  materiel  destined  for  the  Persian  Gulf  have  been 
rerouted  to  the  Red  Sea  in  order  to  bring  the  troops  and  the  ma- 
teriel to  Egypt.   PRINCE  OF  WALES  left  Singapore,  evidently  in 
connection  with  the  Japanese  landings  near  Singora. 

Pacific  Ocean: 

On  7  and  8  Dec.  radio  monitoring  intercepted  orders  to 
British  and  American  steamers  to  change  course  and  keep  radio  si- 
lence. According  to  a  "Times"  report  from  New  York,  U.S.  Navy 
officials  are  conducting  an  investigation  as  to  whether  Callao 
has  been  used  as  a  supply  base  for  Axis  ships. 

The  result  of  the  investigation  will  no  doubt 
serve  as  a  reason  for  the  acquisition  of  U.S. 
bases  in  South  America! 

2.   Own  Situation: 

Report  to  all  blockade -runners  and  submarine  supply 
ships  by  Radiogram  2310  that  the  motor  ships  BURGENLAND  and  RIO 
GRANDE  arrived  at  their  ports  of  destination.  Directive  to  all 
blockade-runners  and  submarine  supply  ships  that  a  state  of  war 
exists  between  the  U.S.A.  and  Japan,  and  instructions  to  discon- 
tinue use  of  the  Japanese  flag  sent  by  Radiograms  0205,  0114,  and 
0307.  Reports  about  enemy  situation  by  Radiograms  1932  and  2137. 

The  German  Naval  Attache  in  Tokyo  receives  orders  to  take  over 
immediately  the  command  of  all  German  merchant  ships  in  the  area 
of  the  Japanese  bases  located  west  of  l60°  and  north  of  the  equa- 
tor. Orders  to  the  ships  are  to  go  through  the  Naval  Communica- 
tions Officer  at  Berlin  until  direct  connections  with  ships  is 
possible  from  Tokyo  by  a  special  channel  of  communications  which 
is  to  be  installed.  See  Radiogram  1616. 

The  reasons  for  the  Fuehrer's  award  of  the  Knight's  Cross  of  the 
Iron  Cross  on  5  Dec.  to  the  commanding  officer  of  the  auxiliary 
cruiser  C0RM0RAN  (ship  "4l"),  Commander  Detmers,  are  to  be  found 
in  1/Skl  I  k  28180/41  Gkdos.  in  War  Diary,  Part  B,  Vol.  V. 

Including  the  last  comprehensive  report  to  the  Naval  Staff  in  the 
middle  of  April,  ship  4l"  had  captured  eight  steamers  with  a 
total  of  56,708  BRT.  Of  these  ships,  a  valuable  tanker  of  11,309 
BRT  was  brought  to  western  France  as  a  prize.  According  to  fur- 
ther reports,  the  ship  captured  and  sank  three  steamers  of  11,566 
BRT  in  all,  in  the  Indian  Ocean,  so  that  the  total  achievement  of 
the  ship  in  cruiser  warfare  amounted  to  eleven  steamers  of  68,274 
BRT.  The  auxiliary  cruiser  has  fulfilled  her  mission  brilliantly 
both  in  raider  warfare  and  particularly  in  the  successful  battle 


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8  Dec.  19^1  CONFIDENTIAL 

with  the  SIDNEY.   This  was  due  primarily  to  superior  leadership 
of  the  commanding  officer. 


II.   Situation  Vest  Area 

1.  Enemy  Situation: 

Radio  monitoring  intercepted  seven  British  distress 
signals  from  the  Channel  and  a  report  of  a  ship  sinking  in  the 
Dundee  area,  probably  from  among  the  minesweeping  forces. 

2.  Ovn  Situation: 

Atlantic  Coast: 

The  motor  ship  BURGENLAND  arrived  at  1015.   She  was 
brought  into  the  Gironde  as  planned .   In  the  afternoon  harbor  pa- 
trol boats  made  a  depth  charge  attack  on  a  target  located  off  the 
entrance  to  Brest  harbor.  Minesweeper  M  "1203  was  sunk  off  Brest 
as  the  result  of  a  bomb  hit. 

Group  West  and  the  Commanding  Admiral,  Submarines  receive  a  direc- 
tive to  get  BENNO  ready  to  sail  and  to  keep  her  on  the  alert  in 
view  of  the  changed  situation  in  the  Pacific.  She  is  not  to  leave 
however,  until  the  situation  in  the  port  of  destination  is  clear- 
ed up  and  the  Naval  Staff  gives  permission  to  depart. 

Channel  Coast: 

Enemy  air  activity  in  the  Boulogne  area  at  noon.   Two 
enemy  planes  were  shot  down. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation: 

An  enemy  plane  was  detailed  to  search  for  a  German  sub- 
marine 20  miles  southwest  of  Lister. 

Own  Situation:  ■ 

The  westbound  convoy  and  the  activities  of  the  mine- 
sweeping  forces  had  to  be  halted  because  of  bad  weather.  Salvage 
operations  on  the  steamer  KAI  were  abandoned. 

2.  Norway : 

Enemy  Situation: 

Radio  telephone  conversation  between  enemy  submarines 
indicate  the  intention  to  make  a  united  attack  on  Hammerfest  in 


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8  Dec.  19^1       *  CONFIDENTIAL 

case  German  warships  are  not  sighted.  Submarine  BOB  and  Russian 
submarine  SUGAR  are  participating  in  the  plan.  German  counter- 
measures  apparently  have  been  recognized  since  the  submarines  were 
warned  of  a  submarine  trap. 

Own  Situation: 

The  Commanding  Admiral,  Norway  is  pressing  for  the  re- 
quested Russian  interpreter.  He  recommends  increased  alert  for 
Hammerfest  and  Honningsvaag  and  use  of  the  search  light  batteries 
at  Tromsoe  Sound.   Otherwise  nothing  to  report. 

On  15  Oct.  the  Naval  Staff  had  ordered  that  operations  of  ships 
in  the  Arctic  Ocean  area  will  be  under  the  command  of  the  Command- 
ing Admiral,  Norway  on  the  basis  of  directions  from  Group  North. 
In  accord  with  a  proposal  from  the  Commanding  Admiral,  Norway 
this  order  is  revised  to  the  effect  that  operations  of  ships  in 
the  Arctic  Ocean  area  will  be  conducted  by  Group  North. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

OKTYABRSKAYA  REVOLUTSIYA.  is  again  ready  for  action  ac- 
cording to  testimony  from  prisoners.  MAKSIM  GORKI  is  also  said 
to  be  ready  for  action  again.  Completion  of  a  third  10,000  ton 
cruiser  is  possible.  Two  more  new  ships  are  being  fitted  out  in 
Leningrad.   It  is  possible  that  ten  to  twelve  destroyers  and 
twenty  to  twenty  five  submarines  are  ready  for  action.  Detailed 
reports  about  losses  of  the  Russian  Baltic  Sea  Fleet  and  data  a- 
bout  Russian  mine  barrages  in  War  Diary  Files  "Barbarossa"  ac- 
cording to  Naval  Staff,  Operations  Division,  secret  reports: 
1/Skl  geh:  51*  731,  54  732,  5*   733. 

If  the  testimony  of  the  Russian  prisoners  is  true, 
then  the  resistance  of  the  Russian  forces  to  the 
daily  air  raids  is  remarkable.  The  air  raids  were 
also  incapable  of  completely  destroying  the  capa- 
city of  the  shipyards. 

2.  Own  Situation: 

In  the  Kolberg  mine  field  407  mines  have  been  swept  up 
to  now.  Another  fourteen  mines  were  exploded  or  salvaged,  and 
twenty  nine  mines  are  still  unaccounted  for.  Convoy  and  trans- 
port traffic  according  to  plan.  According  to  the  report  of  a 
German  steamer  captain,  the  Norwegian  steamers  CHARENTE  and 
GUDVANG  have  changed  berth  in  Goeteborg  harbor.  Both  ships  are 
under  steam  and  have  a  full  complement  of  personnel  aboard,  so 
that  we  can  count  on  their  early  departure.  There  are  1,300  pris- 
oners from  the  Russian  steamer  STALIN  in  Reval  and  vicinity.  They 
are  at  the  disposal  of  the  Finnish  Naval  Command,  which  has  been 
asked  to  remove  them. 


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8  Dec.  1941  CONFIDENTIAL 

For  information  concerning  replacements  for  the  motor-minesweep- 
ers which  are  to  be  transferred  from  the  Deputy  Admiral,  Subma- 
rines to  the  Commander,  Minesweepers,  North  Sea  as  ordered  by 
Group  North,  see  Radiogram  1526. 

For  directive  from  Group  North  regarding  rescission  of  the  order 
requiring  ships  to  travel  in  convoy  see  Radiogram  1246.  For  al- 
location of  the  hospital  ships  in  the  zone  of  Group  North  see 
Radiogram  1600. 


V.   Submarine  Warfare 

1.  Enemy  Situation; 
Nothing  to  report. 

2.  Own  Situation;  ' 

Submarine  U  "130 "  sighted  a  convoy  consisting  of  only 
two  steamers  and  three  corvettes.   The  convoy  was  at  first  pro- 
ceeding westward  and  then  northwestward,  presumably  making  for 
Iceland.  An  attack  on  the  convoy  had  to  be  abandoned  because  of 
increasingly  bad  weather.   On  her  return  trip,  submarine  U  "131" 
sank  an  unescorted  steamer  of  6,000  tons  on  6  Dec.  west  of  Rock- 
all  Bank.  For  a  further  report  on  the  situation  see  War  Diary, 
Part  B,  Vol.  IV. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

Ten  enemy  pursuits  were  shot  down  by  our  own  pursuit 
planes,  and  three  more  enemy  planes  by  anti-aircraft  in  defense 
against  daylight  raids.  Armed  reconnaissance  sank  one  destroyer, 
two  steamers  of  4,000  BRT  each,  and  another  steamer  of  3,000  BRT 
in  the  sea  region  off  Dundee.  Sixty  planes  took  part  in  an  at- 
tack on  Newcastle  during  the  night  of  8  Dec. 

2.  Mediterranean  Theater; 

Five  JU  52 's  and  9,000  liters  of  fuel  were  burned  in  an 
enemy  attack  on  the  Derna  airport.  Four  JU  52's  and  three  other 
planes  were  damaged. 

It  has  been  confirmed  that  three  enemy  planes  were  shot  down  by 
German  fighters,  two  by  anti-aircraft,  and  five  by  Italian  fight- 
ers.  Seven  enemy  fighters  were  probably  shot  down  in  addition. 

For  results  of  air  reconnaissance  see  Enemy  Situation,  Eastern 
Med  i  terranean . 


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8  Dec.  19^1  CONFIDENTIAL 

The  following  directive  from  the  Air  Force  High  Command,  Opera- 
tions Staff  was  sent  to  the  X  Air  Corps: 

a.  The  X  Air  Corps  is  to  assure  accelerated  supply  of  pur- 
suit planes  to  Africa  in  eyery  way  possible.  Adequate  pursuit 
cover  is  of  decisive  importance. 

b.  As  far  as  possible,  our  forces  at  the  Solium  front  are 
to  be  supplied  by  air. 

c.  Minelaying  at  Tobruk  is  to  be  continued. 

3.   Eastern  Front; 

Only  limited  activity  because  of  bad  weather.  For  a 
compilation  of  the  successes  of  the  4th  Air  Force  in  the  Black 
Sea  area  see  daily  situation  report. 


VII.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation: 

Western  Mediterranean; 

According  to  an  Italian  report  which  again  concerns 
the  transport  RANGITATA,  this  ship  is  supposed  to  have  entered 
the  Mediterranean  after  all.  The  success  of  Nightfighter  Group, 
Sicily  on  6  Dec.  (see  War  Diary  7  Dec.)  is  linked  with  the 
RANGITATA.  The  7th  Infantry  Regiment  as  well  as  Air  Force  per- 
sonnel is  said  to  have  been  aboard.  The  entire  surface  of  the 
airport  at  Gibraltar,  with  the  exception  of  the  take-off  strip, 
was  covered  with  planes  on  6  Dec. 

Central  and  Eastern  Mediterranean: 

The  group  of  cruisers  which  was  sighted  on  7  Dec.  be- 
tween Malta  and  Benghazi  arrived  in  Malta  during  the  night  of 
7  Dec,  according  to  an  Italian  report.  One  cruiser  was  damaged 
by  air  attack.  Radio  monitoring  determined  further  movements 
between  Alexandria  and  the  Cyrenaica.  Air  reconnaissance  con- 
firmed this  by  sighting  several  units.  Among  others,  a  force 
of  one  battleship  and  three  destroyers  was  located  60  miles 
northeast  of  Marsa  Matruh.  Amother  force  of  two  auxiliary 
cruisers,  one  steamer  and  three  destroyers  was  sighted  20  miles 
off  Alexandria.  Submarines  were  sighted  off  Cape  Matapan  and 
Argostoli. 

2.  Situation  Italy; 

Enemy  air  raids  on  Bardia  in  the  evening  and  night  of 
6  Dec.  An  enemy  air  raid  on  Catania  the  evening  of  7  Dec.  re- 
sulted in  no  damages  to  military  installations.  The  underwater 
explosion  followed  by  an  oil  spot  on  the  water,  which  the  torpe- 


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8  Dec.  1941  CONFIDENTIAL 

do  boat  PARTHENOPE  reported  after  her  submarine  chase  on  5  Dec. 
(see  War  Diary  7  Dec.)  occurred  in  the  area  of  the  German  mine 
barrage  off  Tripoli.   Possibly  this  means  a  success  of  this  mine 
field. 

Benghazi  reported  shelling  by  enemy  naval  forces  at  0130. 

3.  Transport  of  Supplies  to  North  Africa: 

There  are  no  reports  of  arrivals  of  merchantmen  in  North 
African  harbors.   Two  destroyers  which  were  to  proceed  to  Derna 
arrived  in  Navarino  the  evening  of  7  Dec.   The  total  supplies 
transported  by  units  of  the  Italian  Navy  between  12  Nov.  and  3  Dec. 
amount  to  1,247  tons  of  fuel,  twenty  three  tons  of  supplies  for 
the  Army  and  thirty  tons  for  the  Air  Force. 

These  figures  prove  the  inadequacy  of  the  supplies 
transported  by  naval  vessels.  The  fact  that  hard- 
ly any  regular  transport  vessels  have  reached  their 
ports  of  destination  during  the  last  few  days  fully 
explains  the  difficult  situation  in  which  the  X  Air 
Corps  and  the  divisions  at  the  Solium  and  the  Marsa 
Matruh  fronts  find  themselves. 

Losses  among  the  German  troops  who  were  aboard  the  51st  Transport 
Squadron  fortunately  amount  to  only  sixteen  men. 

4.  Area  Naval  Group  South; 
Aegean  Sea; 

Enemy  Situation; 

At  the  end  of  September  a  message  from  the  French  Naval 
Attache  to  the  British  Naval  Attache  in  Istanbul  was  Intercepted 
by  our  radio  deciphering  service.  According  to  this  message,  the 
Turks  planned  to  lay  a  deep  mine  field  off  the  Dardanelles.  The 
Commander  in  Chief  of  the  Mediterranean  Fleet  did  not  think  this 
desirable,  however,  and  proposed  relying  on  sub-chasers  for  sub- 
marine defense.  Protection  against  surface  forces  would  no£  be 
necessary  as  long  as  control  of  the  eastern  Mediterranean  is  in 
British  hands. 

Intelligence  reports  the  presence  of  a  submarine  net  In  the  Dar- 
danelles between  Naghara  and  Akban  off  Kilia. 

Own  Situation; 

Nothing  to  report. 

Black  Sea; 

Enemy  Situation; 

Air  reconnaissance  reported  a  large  naval  vessel  in  the 
harbor  of  Sevastopol.   Otherwise  nothing  new. 


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8  Dec.  19^1  CONFIDENTIAL 

Ovn  Situation; 

Minelaying  at  Constanta  was  executed  as  planned  "by  mine- 
layer MURGESCU. 

Otherwise  nothing  to  report. 


VIII.  Situation  East  Asia: 

According  to  Japanese  statement,  U.S.  battleships  WEST  VIRGINIA 
and  OKLAHOMA  and  two  cruisers  were  sunk  at  Pearl  Harbor.  Two 
transport  steamers  were  sunk  west  of  San  Francisco.   One  British 
monitor  was  sunk  in  the  vicinity  of  Shanghai. 

The  British  Settlement  In  Shanghai  is  in  Japanese  hands.  The  U.S. 
gunboat  WAKE  was  captured  by  the  Japanese. 

Continuous  heavy  air  raids  are  being  directed  against  the  Philip- 
pines. Parachute  troops  are  said  to  have  been  landed  also.  Guam 
is  blockaded  by  Japanese  ships;   the  Midway  Islands  are  said  to 
be  occupied  by  the  Japanese. 

The  Philippine  cable  has  been  cut. 

Hong  Kong  is  under  attack  from  air  and  land. 

The  Japanese  have  occupied  large  parts  of  southern  Thailand.  One 
of  the  landings  directed  against  the  Malay  Peninsula  took  place 
just  north  of  the  Malay-Thailand  border.  The  British  airdrome  at 
Kota  Bharu  was  attacked  and  taken.  Padang  Tabek  is  mentioned  as 
the  location  of  another  landing.  Japanese  attacks  on  Sabak  are 
said  to  have  been  repulsed  by  British  troops.  Singapore  itself 
sustained  two  severe  air  raids. 


IX.  Army  Situation 

1.   Russian  Front; 

Southern  Army  Group; 

No  change  in  the  situation  in  the  Crimea.  Enemy  attacks 
on  the  1st  Panzer  Army  diminished  on  8  Dec.  Strong  enemy  attacks 
on  the  17th  Army  sector  were  partially  repulsed  by  counterattacks. 
The  6th  Army  gained  some  ground  in  the  attack  of  the  LV  Army  Corps 
Strong  enemy  attacks  on  the  left  flank  of  the  Army  were  repulsed. 

Central  Army  Group; 

Seven  enemy  attacks  west  of  relets  forced  the  divisions 
of  the  XXXIV  Corps  to  withdraw.   On  the  2nd  Panzer  Army  sector, 


-79- 

9862 


8  Dec.  19^1  .  CONFIDENTIAL 

the  3rd  Panzer  Division  also  had  to  take  up  new  positions  east  of 
Tula.  Strong  enemy  attacks  west  and  north  of  Moscow  resulted  in 
retreat  of  advanced  sections  of  the  4th  Army.   North  of  Klin  the 
enemy  succeeded  in  breaking  through  the  positions  of  the  36th 
Motorized  Infantry  Division  and  the  1st  Panzer  Division  and  to  in- 
flict severe  losses  on  our  forces. 

Northern  Army  Group; 

At  Tikhvin  strong  enemy  pressure  also  caused  retreat  of 
the  front  lines  in  the  area  west  of  the  city,  which  thus  fell  a- 
gain  Into  the  hands  of  the  enemy.  At  the  encirclement  front  at 
Leningrad  strong  attacks  and  attempts  to  break  through  were  re- 
pulsed. 

2.  Finnish  and  Norwegian  Front; 

The  Karelian  Army  reached  the  end  of  the  Stalin  Canal 
with  the  capture  of  Povyenets.  The  enemy  force  encircled  west  of 
Medvezhya  Gora  is  being  destroyed.  Nothing  to  report  from  the 
other  sectors  of  the  front. 

3.  North  Africa; 

The  enemy  is  pushing  with  moderately  strong  forces  out 
of  the  Bir  el  Gubi  area  and  the  area  east  of  El  Adem.  Large  con- 
centrations of  motor  vehicles  lead  us  to  expect  an  imminent  at- 
tack toward  the  west  from  the  Tobruk  fortress.  Retreat  of  the 
Panzer  Division  to  the  Ain  el  Gazala  position  lasted  until  even- 
ing because  the  Gambara  Corps  did  not  provide  cover  at  the  time 
directed.   One  enemy  group  is  proceeding  In  the  direction  of 
Agedabia  and  has  occupied  Shabi  (130  km.  northwest  of  Gialo). 
Two  British  armored  cars  shelled  an  Italian  motor  vehicle  on  the 
Via  Balbia  between  Sirte  and  En  Nofilia  on  6  Dec. 


***♦**»*****##*#*♦***»**♦ 


.fln- 


9862 


CONFIDENTIAL 

9  Dec.  19^1 

Items  of  Political  Importance 

Great  Britain; 

In  a  speech  before  the  House  of  Commons  on  8  Dec,  Churchill 
stated  that  the  British  declaration  of  var  on  Japan  should  pre- 
cede the  American  one  since  British  territory  was  attacked  at 
Malacca.  Hitler's  madness  has  poisoned  the  mind  of  the  Japanese. 
He  is  the  one  who  has  to  be  wiped  out  as  the  root  of  all  evil. 
The  extent  of  the  new  danger  must  not  be  underrated.  Part  of  the 
war  materiel  for  Russia  will  now  have  to  be  manufactured  in  Eng- 
land. The  new  conflict  will  be  very  difficult  and  will  probably 
last  a  long  time,  but  Britain  knows  that  four  fifths  of  the 
earth's  population  is  on  her  side. 

The  French  Committee  of  National  Liberation,  headed  by  De  Gaulle, 
declared  war  on  Japan. 

U.S.A.; 

In  his  message  to  Congress,  President  Roosevelt  dealt  exhaust- 
ively with  the  events  of  7  Dec.  He  declared  that  the  American 
people  are  aware  that  the  life  and  safety  of  the  nation  are  at 
stake.  However  long  the  war  may  last,  the  righteous  forces  of 
America  will  be  victorious.  As  Commander  in  Chief  of  the  Armed 
Forces  he  has  ordered  all  necessary  measures  to  be  taken  and  he 
asks  Congress  to  declare  that  a  state  of  war  exists  between  the 
United  States  and  Japan  since  Japan's  cowardly  attack  on  7  Dec. 

The  Senate  voted  82  to  0  and  the  House  of  Representatives  388  to 
1  for  the  declaration  of  war,  which  was  signed  by  President  Roose- 
velt. 

The  press  now  announces  that  Hull  had  proposed  a  non-aggression 
pact  in  his  memorandum  to  Japan  on  26  Nov.  between  the  U.S., 
China,  Russia,  the  Dutch  East  Indies,  Thailand,  and  Japan.  Such 
a  pact  would  completely  have  destroyed  Japan's  freedom  of  action. 

Central  America: 

Haiti,  Honduras,  Nicaragua,  and  San  Salvador  declared  war  on 
Japan.  Declarations  of  war  from  Guatemala,  Cuba,  and  the  Do- 
minican Republic  are  said  to  be  imminent. 

Brazil ; 

President  Vargas  released  a  declaration  of  solidarity  with  the 
United  States.  Confidentially  he  let  the  German  Ambassador  know 
that  he  would  not  think  of  a  break  in  the  relations  with  Germany, 
even  under  U.S.  pressure.  . 

Mexico: 

The  Government  has  broken  diplomatic  relations  with  Japan  and 


-81-  98*2 


9  Dec.  19^1  CONFIDENTIAL 

will  ask  Congress  for  a  declaration  of  war.  Measures  were  taken 
for  collaborating  with  the  United  States  in  coastal  defense  a- 
gainst  Japanese  naval  forces. 

China: 

The  Chungking  Government  declared  war  on  Germany,  Japan,  and  Italy. 

U.S.S.R. : 

The  press  shows  great  reserve  in  its  comments  on  the  outbreak  of 
war  between  Japan  and  the  United  States. 

Japan : 

According  to  Domei,  the  Japanese  answer  on  26  Nov.  made  it  clear 
that  the  fundamental  attitude  of  the  United  States  during  the 
conferences  was  false.   The  U.S.  proposal  for  a  multilateral  non- 
agression  treaty  is  incompatible  with  the  real  situation  in  East- 
ern As  iiT   The  economic  pressure  applied  by  Britain  and  the  United 
States  is  less  humane  than  the  use  of  weapons.   The  imperialistic 
exploitation  by  Britain  and  the  United  States  is  the  curse  of  East 
Asia.   Japan  could  not  allow  the  continuation  of  U.S.  assistance 
to  Chiang  Kai  Shek.   Japan  cannot  tolerate  intrigues  which  would 
prolong  the  war  between  China  and  Japan  by  uniting  the  anti- Japa- 
nese states. 

The  imperial  war  manifesto  declares  that  Japan's  war  aim  is  the 
creation  of  a  lasting  peace  in  East  Asia. 


Conference  on  the  Situation  with  the  Chief ,   Naval  Staff. 

I.   Report  by  Naval  Staff,  Chief  of  Operations  Branch  about  lift- 
ing all  restrictions  on  the  use  of  weapons  in  naval  and  air  war- 
fare against  naval  and  merchant  shipping.  The  corresponding  di- 
rective from  the  Fuehrer  reads  as  follows: 

"1.  All  orders  limiting  use  of  weapons  in  the  defined  block- 
ade areas  (Atlantic  Ocean,  Mediterranean  Sea,  Black  Sea,  Arctic 
Ocean)  are  rescinded.  Regulations  concerning  passage  of  Swedish 
ships  (Goeteborg-South  America  traffic)  remain  in  force. 

"2.  The  United  States  and  all  those  countries  of  Central 
and  South  America  who  align  themselves  with  the  U.S.  against  Ger- 
many or  her  allies  are  now  to  be  regarded  as  enemies.   The  same 
regulations  are  applicable  to  their  naval  and  merchant  vessels  as 
against  British  ships.   The  contraband  regulations  are  in  force 
against  these  states.  Territorial  waters  of  these  states  are  no 
longer  to  be  respected. 

"Appendix:  At  present  the  following  states  are  considered 
as  having  aligned  themselves  with  the  U.S.:  Uruguay,   Panama, 


-82- 


9862 


9  Dec.  19^1  CONFIDENTIAL 

Costa  Rica,  Nicaragua,  Honduras,  Haiti,  San  Salvador,  and  Domini- 
can Republic. 

"3.   The  so-called  Pan-American  Safety  Zone  is  no  longer  to 
be  respected. 

"4.  The  ships  of  those  states  which  remain  neutral,  especially 
the  ABC  states  of  South  America  (Argentina,  Brazil,  Chile  Tr.N. ), 
are  to  be  treated  until  further  notice  according  to  the  interna- 
tional 'Rules  Governing  Prizes',  so  long  as  they  are  clearly  marked 
as  neutral. 

"5.  Paragraph  2  also  applies  to  Chungking  China  since  this 
country  has  declared  war  on  Germany." 

The  Chief,  Naval  Staff  orders  immediate  distribution  of  the  above 
directive  to  all  front  stations,  which  is  effected  by  Naval  Staff. 
Operations  Division.  Copy  of  the  teletype  under  l/Skl  Ic  28519/41 
Gkdos.  in  War  Diary  files  "Directives  for  Warfare  against  Merchant 
Shipping". 

II.  After  hearing  the  report  of  the  Naval  Staff,  Quartermaster 
Division,  the  Chief,  Naval  Staff  orders  that  only  one  of  the  three 
anti-aircraft  sections  in  the  area  of  Gdynia,  Pillau,  and  Danzig 
may  be  transferred  to  Brest.  The  defense  of  Gdynia  is  not  to  be 
weakened . 

III.  The  Chief,  Naval  Staff,  Quartermaster  Division  reports  that 
the  fleet  is  practically  paralyzed  as  a  result  of  the  critical 
fuel  oil  situation,  except  for  a  few  possible  days  of  maneuvers. 

IV.  A  secret  resume  to  the  Armistice  Commission  reports  the  sink- 
ing of  a  British  steamer  off  East  London  by  the  submarine  GLORIEUX 
as  a  French  reprisal  measure. 

V.  The  Naval  Staff  considers  it  necessary  to  reach  an  agreement 
with  the  Japanese  on  the  following  points: 

1.  Mutual  exchange  of  intelligence.  All  reports  important 
to  the  treaty  partner  for  the  conduct  of  the  war  are  to  be  trans- 
mitted: enemy  communications,  operations  executed,  successes 
achieved,  and  estimates  of  the  situation. 

2.  The  treaty  partner  should  be  informed  of  all  plans  that 
may  be  of  importance  to  him  for  the  conduct  of  the  war.   If  nec- 
essary, the  actions  planned  should  be  synchronized. 

3.  In  connection  with  Paragraph  2  the  following  should  be 
arranged  when  German  ships  operate  in  the  Indian  or  Pacific  Ocean: 
agreements  as  to  areas  of  operation,  mutual  support,  radio  ser- 
vice, supplies,  etc. 

4.  Communications  from  Navy  to  Navy  should  be  channelled 
by  way  of  the  attaches. 


-8^-  9862 


9  Dec.  19^1  CONFIDENTIAL 

5.   Continuation  of  the  crude  rubber  transports.   Supply  of 
fuel  to  the  blockade-runners. 

The  Chief,  Naval  Staff  agrees  that  a  teletype  to  this  effect  be 
sent  to  the  Armed  Forces  High  Command,  Operations  Staff,  Planning 
Section. 


Situation  9  Dec.  19^1 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

North  Atlantic  t 

The  Portuguese  Government  is  considering  an  embargo  on 
Portuguese  shipping  to  the  United  States  and  other  states  at  war 
with  Japan. 

According  to  a  report  from  the  Naval  Attache  in  Washington,  from 
1  Jan.  19^1  until  the  end  of  November  three  American  battleships, 
six  cruisers,  and  nineteen  destroyers  were  launched;   two  battle- 
ships, three  aircraft  carriers,  eighteen  cruisers,  eighty  destroy- 
ers, and  twenty  five  submarines  were  put  under  construction.   (For 
ships  commissioned  during  this  period  see  War  Diary  5  Dec.)  The 
Secretary  of  the  Navy  announced  on  5  Dec.  that  Britain  informed 
the  United  States  in  advance  that  she  is  sending  out  a  new  Far 
Eastern  Fleet,  including  two  battleships.   He  refused  to  answer 
the  question  whether  this  would  mean  that  as  a  consequence  U.S. 
warships  would  be  transferred  from  the  Pacific  to  the  Atlantic. 
In  the  new  budget  of  about  eight  million  dollars  for  the  Armed 
Forces,  about  one  billion  dollars  are  earmarked  for  the  Navy. 
Special  items  in  the  naval  budget  are  construction  of  four-motored 
naval  transport  planes  and  conversion  of  merchantmen  to  auxiliary 
aircraft  carriers.   Other  items  include  armament  for  1,000  mer- 
chantmen and  construction  or  purchase  of  400  small  vessels  for 
minesweeping  and  harbor  patrol  services.  Britain  returned  thirty 
five  of  the  seventy  five  borrowed  tankers  in  October  and  November; 
the  rest  is  to  be  returned  this  month. 

This  report  unfortunately  confirms  the  fact  that 
Britain's  supply  problem  has  improved. 

2.  Own  Situation: 

Enemy  report  on  the  situation  by  Radiogram  2334. 


-8*" 


► 


9  Dec.  19^1  CONFIDENTIAL 

II.   Situation  Vest  Area 

1.  Enemy  Situation: 

According  to  radio  deciphering,  British  air  reconnais- 
sance reported  our  three  large  ships  as  still  lying  in  Brest  on 
6  Dec.  According  to  air  reconnaissance,  twelve  steamers  in  con- 
voy were  sighted  east  of  Falmouth  on  a  westerly  course. 

2.  Own  Situation: 

Atlantic  Coast: 

Blockade -runner  BURGENLAND  arrived  in  Bordeaux.  The 
home  front  has  thus  once  again  received  most  valuable  goods,  par- 
ticularly rubber,  and  also  tin  and  other  critical  raw  materials. 

Regarding  the  loss  of  U  "206"  Commanding  Admiral,  Submarines  sus- 
pects that  a  mine  was  the  cause,  see  War  Diary  6  Dec.  Group 
West  reports  that  routes  leading  around  the  mine  fields  as  well 
as  the  limits  of  the  fields  had  been  established  in  cooperation 
with,  and  in  accordance  with  the  requirements  of,  the  Commanding 
Admiral,  Submarines.  Even  before  the  defense  units  were  trans- 
ferred to  the  east  the  Commanding  Admiral,  Defenses,  West  was  in 
a  position  to  keep  only  known  routes  under  constant  control.  For 
submarine  test  dives  it  would  be  useful  to  decide  on  areas  which 
can- be  kept  under  constant  observation  by  the  Commanding  Admiral, 
Defenses,  West.  The  forces  of  the  Commanding  Admiral,  Defenses, 
West  will  be  relieved  to  a  certain  extent  as  soon  as  destroyers 
and  torpedo  boats  become  available  to  the  West  Area  in  January 
(see  Radiogram  0100). 

Radiogram  1907  contains  a  directive  from  the  Naval  Staff  to  the 
Commanding  Admiral,  France  and  the  Commanding  Admiral,  Submarines 
with  copies  to  Group  West,  Supply  Ship  Unit,  Branch  West,  and 
Station  East  of  the  Supply  and  Transportation  Office  of  the  Armed 
Forces  Overseas  regarding  preparations  for  the  reception  of  the 
crews  of  ship  "16"  and  PYTHON.  These  will  probably  arrive  around 
26  Dec 

Minesweeper  M  "1203"  was  sunk  by  a  bomb  hit  on  8  Dec.  Nine  men 
were  killed,  among  them  the  commanding  officer. 

Channel  Coast: 

Mine -exploding  vessel  "143"  was  damaged  on  route  "Rosa" 
between  Boulogne  and  Dunkirk  after  successfully  removing  nine 
mines,  and  is  laid  up  for  repairs. 


III.  North  Sea,  Norway,  Arctic  Ocean 
1.   North  Sea: 

Enemy  Situation: 


-85- 


9862 


9  Dec.  19^1  CONFIDENTIAL 

Lively  minesweeping  off  the  eastern  coast.   Six  mines 
were  swept  -outheast  of  Southwold. 

Own  Situation: 

According  to  a  report  from  the  Commanding  Admiral,  De- 
fenses, North  the  steamer  MADRID  (ship  used  for  living  quarters 
by  the  28th  Submarine  Flotilla)  received  a  bomb  hit  off  Den  Helder. 
One  enemy  plane  was  shot  down  by  a  patrol  vessel.   Convoys  pro- 
ceeding according  to  plan.  Light  enemy  air  activity  off  the  Fris- 
ian coast  and  at  Hook  of  Holland  during  the  morning  and  afternoon. 

2.  Norway ; 

Enemy  Situation: 

Aerial  photography  located  eighty  two  freighters  with 
a  total  tonnage  of  approximately  100,000  BRT  and  160  freight  bar- 
ges in  Archangel  on  7  Dec.  This  remarkably  large  aggregation  of 
ships  is  obviously  due  to  the  ice  conditions. 

Own  Situation; 

The  supposedly  hostile  submarine  which  was  shelled  off 
Kirkenes  on  7  Dec.  was  our  own  motor-minesweeper  R  "160".   Off 
Risoer  an  engine  exploded  aboard  the  CHRISTIAN  RADICH,  which  is 
used  as  floating  naval  quarters.  Two  men  were  killed  and  several 
badly  injured.   The  steamer  STEINBECK  (2,185  BRT)  sank  in  the 
western  entrance  of  Tana  Fjord  after  an  explosion.  The  cause  is 
still  undetermined.  Twelve  men  were  lost.  The  Norwegian  steamer 
BJ0ENN  (5,500  BRT)  with  a  cargo  of  9,000  tons  of  ore  was  bombed 
by  enemy  planes  and  caught  fire  in  the  latitude  of  Bud.  The  ship 
had  to  be  abandoned  because  of  bad  weather.  Five  Norwegians  are 
missing. 

The  Commanding  Admiral,  Norway  gives  the  following  directive  to 
the  Admiral,  Arctic  Ocean  and  the  Admiral,  Arctic  Coast  concern- 
ing priorities  in  minelaying  in  the  Arctic  Coast  area:  anti-sub- 
mar  inT^alFr^gTs—bTf~^P^Tiamo  in  the  Boek  and  Kjoe  Fjords  are  of 
primary  importance,  followed  by  a  mine  barrage  in  Kola  Bay.  Copy 
of  the  directive  1/Skl  28592/41  Gkdos.  in  War  Diary,  Part  C, 
Vol.  Ila. 

3.  Arctic  Ocean: 

It  is  necessary  to  supplement  reconnaissance  and  intel- 
ligence reports  concerning  the  waters  between  Scotland  and  Ice- 
land, the  Denmark  Strait,  and  the  waters  between  these  straits. 
Submarines  and  planes  have  not  yet  been  utilized  to  the  fullest 
possible  extent  for  this  purpose.   It  would  therefore  be  useful 
to  give  to  such  units  in  these  regions  certain  definite  tasks, 
which  can  be  accomplished  on  the  side  without  interfering  with 
their  principal  missions.   The  Naval  Staff  charges  Group  North 
to  carry  on  such  continuous,  systematic  reconnaissance  by  subma- 
rine and  plane  in  the  area  where  the  enemy  might  break  through. 


•  86- 


•) 


) 


9  Dec.  19^1  CONFIDENTIAL 

Group  North  is  ordered  to  contact  the  5th  Air  Force  immediately  in 
this  connection.  The  Naval  Staff  will  request  the  cooperation  of 
the  Commanding  Admiral,  Submarines.  Corresponding  directive  l/Skl 
I  op  2083A1  op  Gkdos.  Chefs,  in  War  Diary,  Part  C,  Vol.  Ha. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation t 

An  Estonian  captain  who  escaped  from  Suursaari  reports 
that  evacuation  of  the  Russian  islands  in  the  inner  Gulf  of  Fin- 
land started  on  1  Dec;   four  ships  and  two  barges  are  engaged  in 
this  operation.  Continuous  explosions  were  observed.  A  captured 
mine  chart  shows  the  location  of  six  Russian  mine  fields.  A  copy 
of  the  report  from  Intelligence  Sub-Station  Reval,  l/Skl  5484}/ 
geh«,  is  in  War  Diary  files  "Barbarossa" 

A  Russian  merchantman,  converted  into  a  minelayer,  was  sunk  at 
the  beginning  of  October  at  59°  58'  2"  N,  29°  51'  5"  E  on  the 
same  day  the  MARAT  was  destroyed.   (See  Radiogram  1800.) 

2.  Own  Situation; 

Supply  convoy  Stettin-Vasa,  consisting  of  three  ships 
with  1,069  men  and  214  planes,  has  left  Stettin. 

Group  North  has  opened  certain  routes  north  and  east  of  Libau  to 
merchantmen  sailing  alone.  See  Radiogram  1203. 

The  Naval  Staff  has  given  permission  for  ships  carrying  men  on 
furlough  to  travel  to  Finland  outside  the  Swedish  inter-island 
route.  See  Radiogram  2011. 


y.   Submarine  Warfare 

1.   Enemy  Situation; 

The  Fleet  Commander,  North  Atlantic  sent  three  urgent 
radiograms  after  1700  concerning  the  location  of  enemy  forces. 
A  radiogram  giving  operational  instructions  to  units  of  the  Home 
Fleet  followed. 

Lively  air  activity  in  the  Gibraltar  area.  Radio  monitoring  in- 
tercepted a  report  from  a  merchantman  about  sighting  a  submarine 
off  Ascension  Island,  and  subsequently  a  warning  against  subma- 
rines issued  for  this  region. 

Steamer  ST  DENIS  (2,435  BRT)  reported  an  attack  by  two  submarines 
in  the  western  Mediterranean.  The  Naval  Attache  in  Istanbul  re- 
ports that  according  to  a  Japanese  source  the  Russian  icebreaker 


9662 

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9  Dec.  19*1  CONFIDENTIAL 

MAKAROV  left  the  Dardanelles  on.  8  Dec. 

2.   Ovn  Situation: 

The  British  steamer  ST  DENIS,  inadequately  marked  as  a 
French  vessel,  was  sunk  by  submarine  U  "652"  south  of  Mallorca 
because  she  sent  a  submarine  warning.   It  is  learned  from  Italian 
radio  monitoring,  that  the  French  Admiral,  South  sent  a  destroyer 
and  several  planes  to  aid  the  ship.   (See  Radiogram  2230.) 

The  Commanding  Admiral,  Submarines  received  notice  from  the  Naval 
Staff  that  "Bernardo"  is  ready  to  supply  four  submarines.  The 
utmost  precautions  are  urged  because  of  the  phase  of  the  moon. 
See  Radiogram  l6l6. 

Further  reports  about  the  submarine  situation  in  War  Diary,  Part  B, 
Vol.  IV. 

The  following  submarines  are  accounted  for  as  of  1  Dec.  according 
to  a  list  from  the  Representative  of  the  Submarine  Branch  on  the 
Naval  Staff: 

86  operational  submarines 

40  submarines  at  the  Submarine  Acceptance  Command 

54  submarines  in  training  and  getting  ready  for  operations 

55  training  submarines* 

Thus  there  is  a  total  of  235  submarines  in  active  service. 

Twenty  one  new  submarines  will  probably  be  commissioned  in  Decem- 
ber. Twenty  three  submarines  were  commissioned  in  November,  but 
only  seven  of  these  went  into  the  operational  zones. 

Normally  only  about  forty  submarines  at  a  time  should  be  in  train- 
ing for  operational  duty,  and  about  twenty  new  submarines  should 
go  to  the  operational  zones  every  month.  The  unusually  unfavor- 
able balance  of  both  these  categories  in  November  is  the  result  of 
the  following: 

a.  The  great  shortage  in  torpedo  recovery  vessels  ready 
for  action. 

b.  The  repeated  failure  of  practice  warheads  on  torpedoes. 

c.  Certain  limitations  in  the  training  possibilities  re- 
sulting from  the  eastern  campaign. 

d.  The  unfortunate  delays  in  the  time  required  for  final 
fitting  operations. 

The  Submarine  Branch  of  the  Naval  Staff  expects  that  an  improve- 
ment of  the  unfortunate  disparity  between  the  large  number  of 
submarines  constructed  and  the  number  ready  for  operations  will 
result  from  the  measures  which  have  been  taken. 


-88- 


•' 


♦ 


9  Dec.  19^1  CONFIDENTIAL 

The  Naval  Staff,  Quartermaster  Division,  Fleet  Branch  reports  the 
following  concerning  the  overland  transfer  of  submarines  en  route 
to  the  Black  Sea  from  the  Elbe  to  the  Danube  on  Kuhlemeyer  rail- 
road cars :   The  250  ton  submarines  can  be  considered  for  this 
transport.   The  engines  would  have  to  be  taken  out  and  the  conning 
towers  taken  off  the  hulls.   If  the  submarines  are  transported  by- 
river,  pontoons  would  be  needed,  and  it  would  be  necessary  to 
blast  a  Danube  bridge  which  is  being  preserved  as  a  historical 
monument.   The  total  time  required  for  the  transfer  is  estimated 
at  ten  to  twelve  months . 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 
Nothing  to  report. 

2.  Mediterranean  Theater: 

For  results  of  reconnaissance  see  Enemy  Situation,  War- 
fare in  the  Mediterranean. 

3.  Eastern  Front: 

Only  light  activity  in  support  of  the  Army. 


VII.  Warfare  in  the  Mediterranean 

1.   Enemy  Situation: 

Western  Mediterranean: 

According  to  Italian  reports  and  radio  nonltoring, 
HERMIONE  and  several  destroyers  were  at  sea  in  the  western  Medi- 
terranean, where  three  more  destroyers  are  said  to  have  joined 
them.  According  to  an  unconfirmed  Italian  report,  thirty  ships 
are  supposed  to  leave  Gibraltar  for  Alexandria  in  a  convoy  with- 
in the  next  few  days . 

Central  and  Eastern  Mediterranean: 

According  to  radio  monitoring,  the  Commander  in  Chief, 
Mediterranean  Fleet  and  heavy  British  units  are  said  to  be  in 
Alexandria.   Light  forces  were  located  between  Alexandria  and 
Cyrenaica.   German  air  reconnaissance  in  this  region  observed  a 
cruiser  and  several  destroyers  and  merchantmen,  obviously  the 
regular  supply  vessels  for  Tobruk.   Three  cruisers  and  four  de- 
stroyers were  at  Malta.  A  large  ship  with  two  smokestacks  was 
sighted  from  the  south  coast  of  Crete.   Submarines  were  sighted 
off  Argostoli,  off  Cape  Matapan,  Navarino,  Zante,  and  northeast 
of  Punta  Alice. 


-89- 


9862 


9  Dec.  19^1  CONFIDENTIAL 

According  to  an  Italian  report  at  0200,  forces  were  operating  a- 
gainst  Benghazi  during  the  night,  among  them  probably  the  flag- 
ship of  the  1st  Battleship  Squadron.  Details  are  missing.  At 
noon  radio  monitoring  Intercepted  a  message  about  an  air  attack 
from  a  force  which  apparently  was  entering  Alexandria. 

A  report  from  a  Spanish  source  about  the  part  of  the  French  Fleet 
which  has  been  lying  at  anchor  in  Alexandria  since  the  armistice 
Is  in  News  Analysis  No.  44,  "Foreign  Navies"  series  of  the  Naval 
Staff,  Intelligence  Division. 

2.  Situation  Italy: 

The  reported  bombardment  of  Benghazi  of  8  Dec.  was  an 
error  resulting  from  a  mistake  in  the  Italian  code.  Enemy  air 
attack  on  Bardia  harbor  on  9  Dec.  but  no  report  of  damage. 

3.  Transport  of  Supplies  to  North  Africa; 

Also  on  9  Dec.  no  supply  ships  arrived  in  the  North 
African  harbors.   Two  destroyers  unloaded  in  Derna.   Two  torpedo 
boats  did  not  leave  port  because  of  bad  weather.  The  cruiser 
CAVORNA  also  put  into  Argostoli  for  protection  from  the  weather. 

The  Admiral,  Aegean  Sea  is  to  provide  a  torpedo  boat  or  an  aux- 
iliary sailing  vessel  to  take  supplies  arriving  by  transport  sub- 
marine at  Bardia  to  the  Solium  front.   Group  South  suggests  use  ■ 
of  the  naval  barges  available  at  Benghazi. 

4.  Area  Naval  Group  South; 
Aegean  Sea; 

Enemy  Situation; 

A  submarine  was  sighted  45  miles  north-northeast  of 
Suda  the  evening  of  8  Dec . 

Own  Situation; 

The  coal  situation  in  Piraeus  forces  us  to  the  utmost 
conservation.  The  most  important  task  at  the  present  time  is  the 
transfer  of  troops  to  and  from  Crete.  All  other  tasks  have  to 
take  second  priority.  For  corresponding  directive  from  Group 
South,  see  Radiogram  1520. 

Black  Sea; 

Enemy  Situation; 

For  intelligence  reports  concerning  supposed  Russian 
landing  attempts  and  the  landing  craft  made  ready  for  such  an 
operation,  see  Radiogram  1919. 


-90- 


986] 


♦) 


• 


9  Dec.  19^1  CONFIDENTIAL 

Ovn  Situation; 

Situation  at  sea  uneventful.  For  attitude  of  Group  South 
to  a  transfer  of  German  Armed  Forces  from  Rumania,  see  l/Skl 
28603/41  Gkdos.,  War  Diary,  Part  C,  Vol.  XIV. 


VIII.  Situation  East  Asia 

1.  Enemy  Situation: 

Radio  monitoring  intercepted  a  general  message  from 
Bandoeng  about  closing  areas  in  the  eastern  Pacific  to  all  ship- 
ping and  fishing.  For  chart  with  plotted  areas  and  radio  intel- 
ligence report  l/Skl  54768/geh.   see  War  Diary,  Part  C,  Vol.  XV. 

According  to  Reuter,  U.S.  troop  transports,  GENERAL  HUGH  SCOTT 
(12,579  BRT)  and  PRESIDENT  HARRISON  (10,508  BRT)  were  lost  by 
Japanese  attack  in  the  Pacific.  Daventry  reports  that  several 
Japanese  planes  were  sighted  on  the  Pacific  coast  of  the  United 
States,  but  no  bombs  were  dropped.  Especially  heavy  daylight 
raids  are  said  to  have  taken  place  on  Manila.  British  naval  ves- 
sels (destroyers)  are  said  to  have  been  damaged  during  intensified 
Japanese  air  raids  on  Hong  Kong. 

The  Japanese  troop  movements  into  Thailand  continue.  Bangkok  is 
being  occupied  by  Japanese  troops. 

The  Japanese  achieved  certain  successes  on  Malacca. 

2.  Situation  Japan: 

According  to  an  authoritative  Japanese  report,  PRINCE 
OF  WALES  and  REPULSE  were  sunk  by  air  raids  east  of  Malacca. 

This  report  which  first  came  from  a  French  source 
still  needs  authoritative  confirmation.  Direct 
Japanese  reports  are  unfortunately  very  scarce, 
but  it  is  certain  that  the  Japanese  successes  in 
the  first  two  days  of  the  war  are  extraordinary. 
The  Naval  Air  Force  and  the  Navy  as  well  as  the 
Army  have  dealt  crushing  blows  to  the  enemy. 

The  Naval  Attache  at  Rome  sends  the  following  report  which  the 
Japanese  Naval  Attache  made  to  the  Italian  Undersecretary  of  the 
Navy:   "The  material  strength  of  the  Japanese  Fleet  has  been  kept 
highly  secret  up  to  this  time.  Even  Japanese  naval  officers  are 
not  permitted  to  inspect  the  most  modern  units.  Japan  has  approx- 
imately the  same  number  of  battleships  as  America. 

"Japanese  aircraft  carriers  are  listed  at  26,000  tons,  but  really 
are  45*000  tons.  Modern  submarines  have  a  surface  speed  of  more 
than  20  knots  so  that  they  can  be  used  as  fleet  escorts.  Torpedo 
plane  units  have  been  trained  systematically  and  amount  to  a  con- 
siderable number.  The  Japanese  Fleet  amounts  to  about  85$  of  the 


9862 

-91- 


9  Dec.  1941  CONFIDENTIAL 

American  total.  Training  of  the  Navy  has  been  under  way  for 
twenty  years  for  war  against  the  United  States,  for  five  years  al- 
so for  war  against  Britain.   The  Japanese  Navy  saw  this  war  coming 
for  years  and  will  fight  to  the  finish.   The  Navy  has  no  doubt  a- 
bout  victory  when  it  meets  the  U.S.  Fleet.   The  only  problem  is 
whether  the  U.S.  Navy  will  come  out  to  fight  in  the  central  Pacific. 
Japan's  oil  supplies  are  sufficient  for  fourteen  months.  Supplies 
of  rice  and  fish  are  wholly  adequate.  Provided  the  war  is  of  short 
duration  there  can  be  no  doubt  of  success." 


IX.  Army  Situation 

1.  Russian  Front: 

Southern  Army  Group: 

The  1st  Panzer  Army  repulsed  strong  enemy  attacks  before 
they  could  gather  momentum.  New  attacks  are  to  be  expected.  No 
change  in  the  situation  at  the  17th  and  6th  Army  sectors. 

Central  Army  Group: 

Strong  enemy  attacks  at  the  2nd  Army  sector  forces  us 
to  pull  back  our  lines  again.  Enemy  attacks  at  Kalinin  were 
stopped  after  all  available  reserves  were  thrown  in. 

Northern  Army  Group: 

Strong  enemy  attacks  against  our  new  positions  west  of 
Tikhvin  were  repulsed. 

2.  Finnish  and  Norwegian  Front: 
No  change  in  the  situation. 

3.  North  Africa: 

Reports  of  the  day  were  not  received. 


«♦*#**********♦*********♦ 


-a?-  9862 


• 


♦ 


CONFIDENTIAL 

10  Dec.   19^1 

Items  of  Political  Importance 

U.S.A.: 

In  a  radio  address  Roosevelt  declared  that  the  American  people 
will  have  to  give  up  once  and  for  all  the  illusion  that  they  can 
isolate  themselves.   Japanese  occupation  of  Guam,  Wake,  and  Mid- 
way is  to  be  expected.  The  United  States  Government  has  known 
for  several  weeks  that  Germany  told  Japan  she  can  share  in  the 
war  loot  only  if  she  attacks  the  United  States.   Germany  and  Italy 
consider  themselves  at  war  with  the  U.S.  without  even  bothering 
about  a  formal  declaration.  The  U.S.  hopes  to  remove  the  Japanese 
threat.  Victory  over  Japan  will  be  of  little  value  if  the  rest  of 
the  world  is  ruled  by  Hitler  and  Mussolini.  The  war  will  be  a  long, 
hard  struggle. 

An  official  directive  classifies  German,  Italian,  and  Japanese 
citizens  as  enemy  aliens.  Numerous  citizens  of  the  Axis  Powers 
were  arrested. 

The  isolationist  America  First  Committee  under  the  leadership  of 
Lindbergh  and  Wheeler,  and  the  United  Mine  Workers  under  the 
leadership  of  Lewis  have  declared  their  unconditional  support  in 
the  war  against  Japan. 

An  investigating  committee  of  the  House  of  Representatives  on  a 
tour  of  inspection  through  South  America  uncovered  additional 
improper  practices  of  British  firms  in  Latin  America  which  were 
detrimental  to  U.S.  exports.   It  also  protested  against  British 
censorship  of  the  U.S.  mail  in  Trinidad  and  Jamaica. 

A  congressional  delegation  travelling  through  England  was  pre- 
sumably convinced  of  the  excellent  morale.  As  a  result  of  a  five 
months'  respite  from  air  raids  and  an  increased  food  supply  the 
population  is  free  from  worry. 

It  seems  doubtful  whether  this  opinion  still  ap- 
plies to  the  present  situation. 

Japan : 

An  official  Japanese  spokesman  declared  that  Soviet-Japanese  re- 
lations are  governed  by  their  present  neutrality  pact.   Japan  of 
course  expects  Germany  to  declare  war  on  the  United  States.  Ac- 
cording to  a  report  from  the  German  Ambassador,  it  can  be  regard- 
ed as  a  fact  that  not  even  the  Japanese  Deputy  Foreign  Minister 
was  informed  of  the  outbreak  of  hostilities  with  the  United  States. 

In  looking  back  on  the  past  policies  of  the  Japa- 
nese Government,  it  is  apparent  that  the  resolute 
leadership  which  led  to  the  events  of  7  Dec.  was 
by  no  means  shared  equally  by  all  elements  of  the 


-93- 


9862 


10  Dec.  19^1  CONFIDENTIAL 

Government.   On  the  contrary,  it  was  the  success  of 
a  minority  in  which  the  gratifying  unanimity  of  the 
Army  and  the  Navy  was  the  decisive  factor.   It  will 
he  interesting  to  learn  later  on  how  these  forces 
were  able  to  prevail .  But  even  today  there  can  be 
no  doubt  but  that  the  clumsy  tactics  of  Roosevelt 
played  into  their  hands. 

Turkey: 

A  press  report  notes  a  strong  tendency  by  Turkey  again  to  side  with 
Britain.  After  he  again  takes  over  the  affairs  of  state,  Prime 
Minister  Saydam  will  appear  before  the  National  Assembly  and  reaf- 
firm Turkey's  intentions  to  fulfill  the  obligations  of  her  pact 
with  Britain. 

Although  the  interpretation  is  no  doubt  correct,  it 
seems  unlikely  that  this  tendency  will  produce 
tangible  results  in  the  near  future  in  view  of  the 
new  situation.  Aside  from  temporary  adjustments 
varying  with  the  course  of  the  war,  Turkey's  ulti- 
mate policy  will  be  to  align  herself  with  which- 
ever side  offers  the  greatest  advantages  on  the 
basis  of  unimpaired  sovereignty  and  possessions. 

The  Turkish  Government  resolved  to  extend  Turkish  neutrality  to 
include  the  Pacific  conflict. 

South  America: 

It  is  possible  that,  on  the  basis  of  the  Havana  Resolutions, 
Argentina,  Uruguay,  and  Peru  will  consider  the  United  States  a 
nonbelligerent.  According  to  a  statement  released  by  the  Vichy 
Telegraphic  Service  (OFl),  the  United  States  have  proposed  that 
a  conference  of  the  Foreign  Ministers  of  the  21  American  Repub- 
lics be  held  at  Rio  de  Janeiro  with  the  purpose  of  establishing 
the  measures  for  mutual  aid  which  were  proposed  at  the  Havana 
conference. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

I.  In  view  of  the  new  situation  the  Chief,  Naval  Staff  agreed 
to  detail  six  large  submarines  for  a  surprise  action  along  the 
American  coast. 

II.  The  Chief,  Naval  Staff,  Quartermaster  Division  discusses  ac- 
quisition of  iron  for  shipbuilding  in  the  Black  Sea  ports  and 
construction  of  transport  vessels  in  Italian  shipyards.   The  Min- 
istry of  Transportation  estimates  that  construction  of  eight 
ships  can  begin  as  soon  as  the  necessary  iron  arrives.  The  pre- 
fabrication  of  plates  and  ribs  in  German  ironworks  will  reduce 
construction  time  considerably. 


_9^_  9862 


• 


• 


10  Dec.  19*1  CONFIDENTIAL 

III.  The  Chief,  Naval  Staff,  Communications  Division  reports  that 
since  the  outbreak  of  the  war  in  the  Pacific  the  U.S.  Navy  has  re- 
placed its  outmoded  and  extremely  simple  code  with  an  entirely  new 
one  which  we  cannot  decipher  for  the  present. 


Situation  10  Dec.  19*1 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

North  Atlantic : 

No  reports. 

South  Atlantic : 

A  U.S.  destroyer  arrived  in  Para  on  8  Dec.  A  deci- 
phered radio  message  states  that  sixty  seven  survivors,  among  them 
four  officers,  of  the  cruiser  DUNEDIN  landed  in  Trinidad.   Two 
light  cruisers  were  in  Capetown  on  1  Dec.  According  to  a  state- 
ment by  the  Argentine  Foreign  Minister,  the  United  States  is  re- 
garded as  a  nonbelligerent  and  may  continue  to  use  Argentine  har- 
bors. 

Pacific  Ocean: 

According  to  radio  monitoring,  all  British  and  Allied 
merchantmen  in  the  area  south  of  Australia  are  ordered  to  steer 
zig-zag  courses.  An  Australian  radio  station  announced  that  all 
lights  and  radio  beacons  along  the  Australian  coast  are  to  be 
extinguished  without  further  notice.  U.S.  radio  stations  sent  a 
similar  warning  concerning  the  U.S.  coasts. 

2.  Own  Situation: 

The  German  Naval  Attache  at  Tokyo  forwarded  a  request 
from  the  Japanese  Navy  that  the  KULMERLAND  await  the  arrival  of 
Japanese  escort  forces  2  miles  west  of  Hinomisaki.   U.S.-  subma- 
rines are  said  to  have  been  detected  off  Yokosuka.  A  correspond- 
ing message  was  sent  to  KULMERLAND  by  Radiogram  2103. 

Report  on  enemy  situation  sent  by  Radiogram  1*59. 

See  War  Diary,  Part  C,  Vol.  I  for  the  operational  order  from  Naval 
Staff,  Operations  Division  for  the  second  undertaking  of  auxil- 
iary cruiser  ship  "10"  according  to  l/Skl  I  K  1892/41  op  Gkdos. 
Chefs . 


-95-  9862 


10  Dec.  19^1  CONFIDENTIAL 

II.  Situation  West  Area 

1.  Enemy  Situation: 
No  reports. 

2.  Ovn  Situation: 

Atlantic  Coast: 

For  proposal  from  Admiral,  France  concerning  command 
problems  arising  from  use  of  -decoy  ship  SILU  see  Radiogram  1300. 
SILU  will  be  employed  to  mislead  the  enemy  about  the  arrival  and 
departure  of  heavy  naval  vessels. 

Channel  Coast: 

Light  damage  resulted  from  a  lov  level  enemy  air  attack 
on  a  merchantman  off  Le  Havre  on  9  Dec.   Otherwise  nothing  to  re- 
port. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation: 

Lively  minesweeping  activity  along  the  eastern  coast. 
Four  mine  detonations  in  the  outer  Thames  estuary. 

Own  Situation: 

Bad  weather  interfered  with  the  west  convoy.   Other  con- 
voys proceeding  according  to  plan.   There  are  eleven  men  missing 
and  one  dead  aboard  the  floating  naval  quarters  MADRID  (see  War 
Diary  9  Dec).   Sabotage  is  suspected.   The  boatfalls  and  firehoses 
had  been  cut  into.  During  the  day  isolated  enemy  air  activity  in 
the  area  of  the  Frisian  Islands  and  between  Heligoland  and  Weser- 
muende.  Low-level  air  raid  on  Wilhelmshaven,  Wesermuende,  and 
Cuzhaven.  Damage  negligible. 

2.  Norway : 

Enemy  Situation: 

Nothing  to  report. 

Own  Situation: 

The  8th  Destroyer  Flotilla,  including  five  destroyers 
and  the  TANGA,  left  Tromsoe  for  Kirkenes. 


9862 

-96- 


10  Dec.    19^1 


CONFIDENTIAL 


* 


The  Commanding  Admiral,  Norway  reports  that  the  completion  of  the 
batteries  on  the  Arctic  Coast  cannot  be  counted  on  in  the  near 
future,  since  due  to  the  transport  and  unloading  situation  the  a- 
mount  transported  has  been  reduced  to  one  fourth. 


IV.   Skagerratc,  Baltic  Sea  Entrances,  Baltic  Sea 

1.   Enemy  Situation; 

The  following  information  was  obtained  by  interrogating 
prisoners  of  war: 

All  personnel  reserves  of  the  Baltic  Fleet  had  been  called  to 
active  duty  by  the  middle  of  November,  and  were  assigned  to  shore 
duty  for  the  defense  of  Leningrad.  The  sudden  halt  in  the  German 
offensive  on  Leningrad  at  the  beginning  of  October  supposedly  came 
as  a  surprise  to  military  circles  in  the  city.   It  is  said  that 
the  city  would  have  fallen  had  the  offensive  continued  for  another 
day  or  two.   See  War  Diary  files  "Barbarossa",  l/Skl  55026  and 
55027  geh.,  for  statements  by  the  captured  radio  technician  of  the 
cruiser  KIROV  concerning  locations  of  submarines,  construction  of 
new  cruisers,  and  locations  of  artillery  batteries,  as  well  as 
Captain  Evdekimov's  statement  concerning  possible  effects  of  our 
own  propaganda  directed  against  the  Russian  population. 


2. 


Own  Situation: 


According  to  a  report  from  the  Commanding  Admiral,  Bal- 
tic Countries,  the  transport  STALIN  did  not  run  into  the  Juminda 
mine  barrage  but  into  another  mine  field.  Patrols  in  the  Skager- 
rak  were  hindered  by  bad  weather.  Steamer  HELGOLAND  was  towed 
into  Vejle  after  striking  a  mine  off  Vejle  Fjord. 


* 


V.   Merchant  Shipping: 

A  24  hour  working  day  is  to  be  introduced  in  the  United  States 
for  ship  construction.  All  United  States  ships  at  sea  have  re- 
ceived orders  to  proceed  to  a  safe  harbor  at  once.  All  Soviet 
ships  en  route  from  the  U.S.  West  Coast  to  the  Russian  Siberian 
coast  were  called  back  to  America.  The  Japanese  motor  ship 
TATUTA  MARU,  en  route  to  the  U.S.A.  with  numerous  U.S.  nationals 
aboard,  is  at  present  between  Honolulu  and  California. 

Italy  sold  Brazil  eight  of  her  ships  caught  in  Brazilian  harbors, 
60,000  BRT  in  all,  with  option  to  repurchase  them  after  the  war. 
The  ships  are  to  be  used  in  traffic  between  Brazil  and  American 
countries  not  at  war  with  Italy. 


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10  Dec.    1941  CONFIDENTIAL 

VI.   Submarine  Warfare 

1.  Enemy  Situation t 

Radio  monitoring  located  a  British  ship  150  miles  north- 
vest  of  the  Hebrides  and  intercepted  a  message  from  the  convoy 
control  station  in  Hull  to  Reykjavik  that  departure  of  convoy  22 
has  been  postponed  until  11  Dec.  at  0700.   The  U.S.  steamer  OREGON 
reported  itself  sinking  200  miles  east  of  New  York. 

2.  Own  Situation: 

Because  of  bad  weather  contact  could  not  be  maintained 
with  the  convoy  on  eastward  course  west  of  the  Rockall  Bank.   One 
steamer  of  7*000  BRT  was  sunk  and  one  tanker  was  hit.  For  further 
report  on  the  situation  see  War  Diary,  Part  B,  Vol.  IV. 

Due  to  the  general  lack  of  forces  it  will  not  be  possible  until 
further  notice  to  augment  the  ralnesweeping  forces  of  Commanding 
Admiral,  Defenses,  West,  as  the  Commanding  Admiral,  Submarines 
requested  in  connection  with  the  loss  of  submarine  U  "206".   The 
Commanding  Admiral,  Submarines  was  advised  of  the  situation  by 
Radiogram  1030,  with  special  reference  to  the  opinion  of  Group 
West  (see  War  Diary  9  Dec).   Copies  were  sent  to  Group  West  and 
the  Commanding  Admiral,  Defenses,  West. 

The  Commanding  Admiral,  Submarines  requests  immediate  release  of 
the  large  submarines  now  at  sea  and  of  those  which  will  be  ready 
to  leave  their  harbor  in  the  next  few  days,  in  all  twelve  subma- 
rines.  Plan:   Operation  "Paukenschlag"  off  the  American  coast. 
Medium  submarines  can  fulfill  operational  requirements  in  the 
Gibraltar  area. 

The  Naval  Staff  is  releasing  six  large  submarines  which  are  to 
be  taken  from  those  now  leaving  their  bases.  Release  of  the  large 
submarines  already  in  the  operational  area  west  of  Gibraltar  is 
out  of  the  question.   Corresponding  teletype,  l/Skl  Iu  2105/41  op 
Odkos.  Chefs.,  in  War  Diary,  Part  C,  Vol.  IV. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

Armed  reconnaissance  sighted  and  unsuccessfully  attacked 
a  convoy  of  thirteen  steamers  east  of  Cromer. 

2.  Mediterranean  Theater: 

An  enemy  naval  force  shelled  Derna  at  0730.   Italian 
dive  bombers  attacked  and  reported  five  hits  on  a  cruiser  and 
one  hit  on  a  destroyer. 


•98- 


* 


10  Dec.    19^1  CONFIDENTIAL 

■ 

3.  Eastern  Front; 

No  news  from  the  Army  front  because  of  defect  in  con- 
nection. See  Situation  Black  Sea  for  results  of  reconnaissance 
there . 

4.  Special  Items ; 

The  Commander  in  Chief,  Air  has  no  objections  to  the 
French  request  to  the  German  Armistice  Commission  for  thirty 
seven  aerial  torpedoes.   (See  Radiogram  1930.) 


VIII.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation t 

Western  Mediterranean: 

In  Gibraltar  are  MALAYA,  ARGUS,  UNICORN,  a  cruiser  of 
the  DIDO  class,  MAIDSTONE,  one  auxiliary  cruiser,  one  cable  layer, 
eight  destroyers,  seven  gunboats,  two  passenger  steamers,  forty 
five  freighters,  and  twelve  tankers.  Still  more  ships  are  at  sea 
in  the  western  Mediterranean  according  to  radio  monitoring.   The 
French  command  post  in  North  Africa  repeated  a  message  about 
sighting  a  submarine  75  miles  south  of  Mallorca. 

Central  and  Eastern  Mediterranean; 

A  cruiser  and  two  destroyers  shelled  Derna  from  0730  to 
0800,  and  then  left  at  high  speed  on  an  eastward  course.   Obvi- 
ously the  Italian  dive  bomber  attack  was  not  very  successful. 
Three  merchantmen  on  a  westward  course  were  sighted  east  of  Marsa 
Matruh;   one  merchantman  was  sighted  north  of  Alexandria  proceed- 
ing toward  the  harbor.  Radio  monitoring  intercepted  a  message  at 
noon  telling  of  a  bombing  attack  on  a  British  ship.  Location 
could  not  be  determined.   It  was  learned  that  auxiliary  cruiser 
CHANTALA  (3,129  BRT)  hit  a  mine  on  7  Dec.  and  that  escort  vessel 
FLAMINGO  (l,190  BRT)  was  badly  damaged  by  a  bomb  hit,  probably 
Ai  off  the  Egyptian  coast. 

2.  Situation  Italy; 

An  Italian  ammunition  depot  was  set  on  fire  during  an 
enemy  air  raid  on  Tripoli  on  9  Dec.  The  fires  were  .still  burn- 
ing on  10  Dec.   Only  slight  damage  was  caused  by  the  shelling 
of  Derna. 

The  German  Naval  Command,  Italy  states  in  connection  with  the 
order  to  transfer  Italian  submarines  from  the  Atlantic  for  trans- 
port of  supplies  to  North  Africa  (Cf.  War  Diary  7  Dec,  Subma- 
rine Warfare),  that  the  capacity  of  the  Italian  submarine  docks 
is  already  taken  up  by  German  submarines,  and  that  the  possibili- 
ties of  using  the  Italian  submarines  for  the  above  purpose  are 


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9862 


10  Dec.  19^1  CONFIDENTIAL 

limited  in  any  case.   Therefore  it  is  requested  that  the  order  "be 
checked  once  more  and  a  new  decision  be  made  within  five  days, 
since  Italian  preparations  will  otherwise  get  under  way  (see  Radio- 
gram 1320). 

3.  North  Africa: 

Supply  steamer  SPECIA  is  scheduled  to  arrive  in  Benghazi 
on  10  Dec.  However,  sufficient  supplies  for  North  Africa  cannot 
be  counted  on  for  this  date  either,  since  bad  weather  interrupted 
the  voyage  of  the  steamer  CALITEA  at  Argostoli  and  prevented  the 
cruiser  CADORNA  from  leaving  Navarino.   It  also  forced  the  cruisers 
BARBIANO  and  GIUSSANO,  which  left  Palermo  on  9  Dec,  to  return  on 
10  Dec.   On  9  Dec.  they  were  unsuccessfully  attacked  by  enemy 
aerial  torpedos  off  Marittimo. 

Off  Navarino  on  9  Dec,  an  enemy  submarine  torpedoed  the  steamer 
VENIERO  which  was  returning  from  Benghazi  with  2,000  British 
prisoners  of  war  aboard.   The  ship  could  no  longer  be  steered  and 
was  driven  on  the  beach.  Two  transport  submarines  were  en  route 
to  North  African  harbors  with  cargoes  of  gasoline,  a  third  subma- 
rine loaded  with  food  and  fuel  is  scheduled  to  leave  for  Bardia 
on  11  Dec . 

4.  Area  Naval  Group  South: 
Aegean  Sea: 

Enemy  Situation: 

A  submarine  was  sighted  west  of  Rhodes. 

Own  Situation: 

The  steamer  TEDOL,  reported  grounded  in  Mudros  Bay  on 
15  Nov.  with  a  cargo  of  mazut,  was  salvaged  on  9  Dec.  without 
damage  or  casualties.   Otherwise  nothing  to  report. 

Black  Sea: 

Enemy  Situation: 

Intelligence  Center  Turkey  reported  that  only  three  Rus- 
sian tankers,  besides  some  icebreakers,  entered  the  Bosporus. 

Air  reconnaissance  over  Novorossisk  sighted  a  heavy  cruiser, 
three  medium  sized  steamers,  and  two  docks.  Twenty  eight  small 
ships  were  sighted  in  Tamanskaya  Bay,  two  tankers  and  ten  steam- 
ers in  Makhach  Kala  (Caspian  Sea).   There  is  an  oil  storage  depot 
southwest  of  the  harbor  with  six  large,  forty  eight  medium  and  ten 
small  oil  tanks. 

Own  Situation: 

Nothing  to  report. 


-100- 


t 


• 


10  Dec.  19^1  CONFIDENTIAL 

IX.   Situation  East  Asia 

1.  Enemy  Situation; 

The  British  Admiralty  has  admitted  sinking  of  the  PRINCE 
OF  VALES  and  the  REPULSE  east  of  the  Malacca  Peninsula. 

According  to  radio  station  Daventry,  Duff  Cooper  declared  that 
severe  loss  of  personnel  was  sustained  In  the  sinkings  of  the  two 
battleships.   Japanese  sources  have  reported  two  of  their  trans- 
ports sunk  and  two  others  damaged.   Japanese  landings  in  the 
Philippines  were  admitted,  but  a  large-scale  defense  raid  of  U.S. 
planes  followed.  Bitter  fighting  is  under  way  on  Malacca.  Kota 
Bharu  has  been  abandoned.   Chinese  troops  are  said  to  have  joined 
in  the  fighting  at  the  Hong  Kong  front,  but  in  spite  of  this  the 
British  lines  were  penetrated  in  some  places. 

For  organization  of  the  U.S.  Pacific  Fleet,  based  on  Hawaii,  ac- 
cording to  radio  monitoring  and  deciphering,  see  War  Diary,  Part  C, 
Vol.  XVI. 

r  • 

2.  Situation  Japan; 

According  to  a  report  from  the  German  Naval  Attache  in 
Tokyo,  the  attack  on  Hawaii  lasted  two  hours.   Eight  aircraft 
carriers  and  more  than  300  planes  took  part  in  the  attack.   Thirty 
planes  were  lost.   The  main  weapons  used  were  torpedoes  and  1,000 
kilogram  bombs.   Guam  and  Wake  are  occupied.   Midway  is  destroyed, 
its  occupation  is  not  planned.  The  destruction  of  these  bases 
cuts  off  the  U.S.  air  route  to  Manila. 

It  is  estimated  that  two  months  will  be  required  for  total  occupa- 
tion of  the  Philippines  and  probably  four  months  for  the  conquest 
of  Singapore.   The  occupation  of  the  oil  fields  in  Sumatra  and 
Borneo  is  not  planned  until  Singapore  and  the  U.S.  Fleet  have  been 
crippled  as  much  as  possible. 

An  attack  on  Vladivostok  is  not  planned  for  the  time  being  since 
forces  are  not  available.  However,  supplies  by  sea  will  be  cut 
off  as  much  as  possible. 

The  PRINCE  OF  WALES  and  the  REPULSE  were  sunk  by  torpedo  planes 
off  Singora.  Several  submarines  are  operating  off  San  Francisco. 
So  far  they  have  sunk  a  tanker  and  a  merchantman. 

Report  from  the  Attache,  l/Skl  28692/41  Gkdos.,  in  War  Diary, 
Part  C,  Vol.  XV. 

The  sinking  of  the  two  British  battleships  is  an 
event  of  particular  significance.  Within  a  few 
days  the  combined  power  of  the  Japanese  Fleet  and 
its  own  Naval  Air  Force  operating  over  a  wide  area 
has  strengthened  Japan's  position  on  the  sea  to 
an  extraordinary  degree,  and  has  given  Japan  sur- 
prisingly farrreaching  strategic  advantages  at 
sea.  The  planning  of  these  operations  merits  the 
highest  praise. 

It  is  most  significant  that  an  air  arm  belonging 


-101- 


10  Dec.  19^1  '  CONFIDENTIAL 

to  the  Navy  Itself  was  the  prime  factor  in  this 
achievement.   Nothing  could  more  fully  justify  the 
existence  of  such  an  organization  than  such  a  vic- 
tory.  Only  an  air  force  which  is  at  home  on  the 
sea  and  is  an  integral  part  of  the  naval  forces 
could  have  been  so  successful.   In  any  case,  we 
must  unreservedly  admit  that  our  own  independent 
Air  Force,  in  over  two  years  of  operations  agains t 
heavy  naval  vessels,  the  backbone  of  the  enemy's 
sea  power,  has  achieved  nothing  comparable  to  the 
success  achieved  by  the  Japanese  Naval  Air  Force 
in  two  days  of  operation. 

Admiral  Nomura  told  the  Chief,  Naval  Staff  that  the  Japanese 
Fleet  and  Naval  Air  Force  were  also  successful  in  destroying  or 
heavily  damaging  the  major  part  of  the  U.S.  Far  Eastern  Fleet. 
Details  have  not  yet  been  received. 


X.   Army  Situation 

1.   Russian  Front; 

Southern  Army  Group; 

Probable  enemy  defense  measures  east  of  the  Strait  of 
Kerch.  Extensive  fortifications  are  under  construction.  Numerous 
un- coordinated  enemy  attacks  were  made  against  the  1st  Panzer  Army 
sector.  The  attacks  collapsed  under  our  anti-aircraft  artillery 
fire.   The  17th  Army  was  fighting  heavy  defensive  engagements  all 
day.  The  situation  there  is  of  utmost  gravity.  Several  strong 
enemy  penetrations  southeast  of  Popasnaya.  Troops  of  the  supply 
forces  had  to  be  used  as  last  reserves.  The  6th  Army  gained  some 
territory  in  continuation  of  the  attack  on  the  right  flank.  Enemy 
attacks,  among  them  a  night  attack,  had  to  be  repulsed  on  the  left 
flank  in  the  sector  of  the  25th  Infantry  Division. 

Central  Army  Group; 

The  enemy  attacked  incessantly  in  an  attempt  to  enlarge 
the  gaps  where  he  broke  through  the  positions  of  the  2nd  Army, 
the  3rd  Panzer  Group,  and  the  9th  Army.   Our  positions  had  to  be 
pulled  back  considerably  on  some  parts  of  the  front.  Retreat  of 
the  2nd  Panzer  Army  to  the  Don-Shat-Upa  line  took  place  as  plan- 
ned. We  were  able  to  throw  back  strong  attacks  at  Tula.  The 
4th  Panzer  Group  also  executed  planned  movements  of  evasion  and 
formed  a  new  defensive  front.  Attacks  on  the  Kalinin  position 
from  the  north  and  northwest  were  repulsed. 

Northern  Army  Group; 

Increased  enemy  attacks.  An  attack  reinforced  by 
troops  transferred  from  the  Valdai  area  is  expected. 


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< 


10  Dec.    19^1  CONFIDENTIAL 

2.  Finnish  and  Norwegian  Front; 

On  the  sector  of  the  163rd  Infantry  Division,  an  attempt 
"by  an  enemy  patrol  to  cross  the  Svlr  was  repulsed.  Embarkation  of 
the  9th  SS  Regiment  in  Vasa  was  halted.  Transport  of  the  regiment 
"by  rail  to  Helsinki  is  in  preparation.  Otherwise  the  over-all 
situation  remained  unchanged. 

3.  North  Africa; 

The  Savona  Division  received  supplies  of  food  and  water 
from  Bardia  on  9  Dec. 

The  Panzer  Group  continued  retreat  to  the  northwest  on  9  Dec.  and 
completed  withdrawal  operations  of  the  divisions  of  the  Italian 
XXI  Army  Corps  to  the  Ain-el-Gazala  position  on  10  Dec.  Disen- 
gagement from  the  Tobruk  front  took  place  according  to  plan  and 
without  enemy  interference.  The  Gambara  Corps  and  the  Afrika 
Korps  covered  the  maneuver.   On  10  Dec.  the  enemy  followed  up  all 
along  the  front.   In  order  to  protect  the  southern  flank,  orders 
were  given  for  the  Afrika  Korps  and  the  Gambara  Corps  to  retreat 
to  the  Segnali-Bir  Terarad  area.  The  90th  Light  Division  has  the 
task  of  defending  the  area  around  Agedabia  and  preventing  enemy 
landings  in  the  Gulf  of  Sidra.  The  commanding  officer  of  the 
15th  Panzer  Division  was  killed  in  action. 

The  Panzer  Group  reports  that  the  over-all  supply  conditions  and 
the  immobility  of  the  Italian  Infantry  Division  will  not  permit 
defense  of  the  Cyrenaica  for  any  length  of  time.  A  withdrawal  of 
the  Italian  Infantry  Division  to  the  area  around  Derna  beginning 
on  11  Dec.  is  inevitable. 


♦*♦**♦*********»***#***** 


i 


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CONFIDENTIAL 

11  Dec.  19^1 

Items  of  Political  Importance 

Germany; 

Explaining  the  stand  of  the  Government,  the  Fuehrer  issued  a 
statement  to  the  effect  that,  because  of  the  attitude  taken  by 
the  United  States,  Germany  and  Italy  will  side  with  Japan  in 
this  var.  The  Fuehrer  read  the  text  of  the  pact  between  Ger- 
many,  Italy  and  Japan  which  expresses  the  determination  of  the 
signatories  to  fight  the  war  to  a  victorious  conclusion. 

For  months  the  military  aspect  of  the  internation- 
al situation  has  been  very  disadvantageous  to  the 
Axis  Powers.  By  the  above  statement,  the  position 
of  the  three  countries  signatory  to  the  treaty  is 
clearly  defined  according  to  international  law. 

Great  Britain; 

The  Na clonal  Service  Law  was  passed  in  the  House  of  Commons  after 
its  first  reading.  The  vote  was  22^:0.  Press  releases  from  Lon- 
don state  that  public  opinion  demands  unification  of  the  main  Brit- 
ish and  U.S.  naval  forces  in  Singapore.  This  is  said  to  be  desired 
in  order  to  deliver  a  decisive  "knock-out"  blow  to  the  Japanese 
Fleet  within  the  shortest  possible  time. 

This  arrogance  has  already  had  catastrophic  conse- 
quences in  the  Japanese  victories  over  Anglo-Saxon 
naval  forces  in  the  Pacific. 

U.S.A. : 

See  Political  Review  No.  291,  Paragraph  5,  for  a  detailed  account 
of  Roosevelt's  fireside  chat  of  10  Dec.  A  diplomatic  report  con- 
cerning U.S.  reaction  to  the  Japanese  attack  fully  confirms  our 
opinion  about  the  failure  of  Roosevelt's  politics.  See  War  Diary 
7  Dec.  All  the  calculations  of  the  U.S.  war  plan,  as  published 
by  the  Chicago  Tribune,  have  now  come  to  naught  in  view  of  the  re- 
cent developments.  A  Pacific  war,  two  to  three  years  before  com- 
pletion of  a  Two  Ocean  Navy,  at  a  time  when  the  Army  is  not  yet 
fully  equipped,  and  the  giant  armament  machine  has  not  yet  gained 
momentum,  must  be  most  unwelcome  to  the  U.S.  Government  and  ex- 
plains the  present  day  anxiety  in  the  United  States.  Roosevelt 
has  made  a  terrible  miscalculation  in  counting  on  Japanese  meek- 
ness and  fear  of  the  U.S..  As  the  heavy  losses  on  Hawaii  show, 
the  Japanese  surprise  attack  was  not  in  the  least  suspected.  The 
duration  of  the  war  against  Japan  is  discussed  these  days  in 
terms  of  two  to  three  years  instead  of  the  "push-over"  it  was 
supposed  to  be  in  earlier  days. 

The  House  of  Representatives  repealed  the  provisions  limiting 
duration  of  service  in  the  Armed  Forces  to  eighteen  months  and 
forbidding  overseas  service  of  draftees. 


-104-  9862 


11  Dec.  19^1  CORF  IDEM1  IAL 

Japan ; 

The  German  Ambassador  reports  that  the  Japanese  High  Command  was 
evidently  successful  in  keeping  secret  the  exact  time  set  for  the 
attack.  Several  effective  diversionary  measures  were  undertaken 
in  order  to  preserve  the  element  of  surprise.  The  departure  of 
the  TATUTA  (see  War  Diary  10  Dec.)  and  a  social  event  sponsored 
by  the  War  Ministry  on  the  eve  of  7  Dec.  were  a  part  of  these. 

Finland: 

A  diplomatic  source  reports  that  the  Finnish  people  received  the 
British  declaration  of  war  with  a  feeling  of  regret  coupled  with 
resignation  and  determination. 

Turkey; 

The  German  Ambassador  reports  that  Japan's  entry  into  the  war  has 
had  a  strong  effect.  The  Turkish  Government  is  said  to  have  re- 
viewed the  international  situation  and  to  have  arrived  at  the  fol- 
lowing conclusion:  Since  the  war  is  now  world  wide,  the  necessity 
and  opportunity  for  a  successful  compromise  solution  has  increased. 
In  view  of  the  geographic  situation  in  the  war  with  the  United 
States,  it  is  impossible  for  either  side  to  win  a  decisive  victory. 
Ankara  is  said  to  know  very  well  that  the  discontinuation  of  war 
supply  shipments  to  Russia  will  have  a  decisive  influence,  both 
factual  and  moral,  on  that  country's  military  situation. 

According  to  a  press  report,  U.S.  trade  representatives  in  Istan- 
bul are  taking  no  more  Turkish  orders  for  American  goods,  since 
U.S.  shipping  space  for  transport  of  civilian  goods  will  be  a- 
vailable  only  to  a  very  limited  extent. 

Brazil: 

Press  reports  state  that  all  business  transactions  of  non-Ameri- 
cans were  placed  under  Government  supervision. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

The  Chief  of  the  Operations  Branch,  Naval  Staff  reports  on  the 
Fuehrer's  Directive  No.  39.  This  directive  concerns  immediate 
cessation  of  large  scale  offensive  operations  and  a  shift  to  de- 
fensive measures  and  related  special  tasks.  The  Navy  has  to  pro- 
vide safe  conduct  for  merchantmen  and  troop  supply  ships  on  their 
way  to  Finland.  The  route  to  Helsinki  is  much  safer  now  that 
Hangoe  and  Odensholm  have  been  occupied  by  our  forces  and  should 
be  used  as  much  as  possible.  Furthermore,  the  Navy  is  charged 
with  substantially  increasing  the  number  of  small  ships  to  be 
constructed  for  the  purpose  of  ferrying  supplies  and  reinforce- 
ments (especially  across  the  Black  Sea  and  the  Aegean  Sea). 
These  small  ships  are  to  be  built  in  our  own  country  as  well  as 
in  countries  allied  to  or  occupied  by  Germany.  All  requirements 


-105-  9862 


11  Dec.  1941  CONFIDENTIAL 

and  security  regulations  which  are  not  absolutely  essential  will 
have  to  be  foregone. 

Directives  corresponding  to  the  above  text  are  sent  to  Groups 
North  and  South  as  well  as. to  the  Quartermaster  Division,  Naval 
Staff,  by  Fleet  Operations  Section,  Naval  Staff  (l/Skl  I  op 
2102/41  Gkdos.  Chefs.).  For  copy  of  the  directives  see  files 
"Barbarossa". 


Situation  11  Dec.  1941 

I.   Var  in  Foreign  Waters 

1.   Enemy  Situation; 

North  Atlantic; 

Radio  monitoring  located  FURIOUS  in  the  western  North 
Atlantic,  RAMILLIES  on  the  northern  route  and  EDINBURGH  in  the 
Iceland  region.  A  Japanese  report  states  that  KING  GEORGE  V  was 
sighted  in  Bombay  on  2  Nov..  Our  confirmed  reports  show  that 
PRINCE  OF  WALES  was  at  Bombay  the  same  day,  so  that  a  Japanese 
error  seems  likely. 

Radio  monitoring  intercepted  a  radiogram  from  Annapolis  at  1640 
which  was  directed  to  all  U.S.  naval  units.  The  message  stated 
that  Germany  has  declared  war  on  the  United  States.  A  message 
intercepted  at  1721  gave  orders  for  execution  of  plan  "Wpl  46" 
against  Germany  and  Italy  as  well  as  Japan,  and  gave  orders  for 
the  Naval  Attaches  to  instruct  the  naval  offices. 

The  Kaval  Attache  at  Washington  reports  that  eight  merchantmen 
per  month  are  being  outfitted  with  armament.   This  seems  too 
slow  to  be  true. 

South  Atlantic ; 

Radio  intelligence  deciphered  a  report  stating  that  an 
auxiliary  cruiser,  probably  CIRCASSIA,  was  to  leave  Jamaica  on 
10  Dec.  and  proceed  to  Trinidad  by  way  of  St.  Martin,  Saba,  and 
St.  Eustatius.   The  U.S.  cruiser  OMAHA  and  the  destroyer  SOMERS  ar- 
rived in  Pernambuco  on  10  Dec. 

Press  reports  state  that  Argentina  and  Chile  are  conferring  about 
joint  fortification  of  the  Straits  of  Magellan. 

Pacific  Ocean; 

•  On  9  Dec.  the  radio  station  at  Bandoeng  broadcast  a 
warning  that  a  mine  field  has  been  laj.d  off  Batavia  and  for  all 
ships  to  steer  to  a  fixed  control  point.  Press  reports  state 
that  the  British  expect  that  German  merchantmen  now  lying  in  Jap- 


-106-  986: 


11  Dec.  19^1  CONFIDENTIAL 

anese  harbors  vill  be  sent  into  the  Pacific  as  armed  merchant 
raiders.  Chile  and  Mexico  will  start  to  patrol  their  terri- 
torial waters  in  the  Pacific. 

2.   Own  Situation; 

Report  on  the  enemy  situation  by  Radiogram  2217. 


II.   Situation  Vest  Area: 

Some  bombs  were  dropped  during  an  enemy  air  raid  on  Brest  between 
1920  and  2105.  Some  civilian  property  was  damaged. 

Nothing  to  report  otherwise. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation; 

The  radio  monitoring  service  reports  the  following  Brit- 
ish vessels  ready  for  action  in  the  Scapa  area:  DUKE  OF  YORK,  RE- 
NOWN, RESOLUTION,  VICTORIOUS. 

In  the  Clyde,  but  not  ready  for  action:  NELSON. 

There  have  been  no  accurate  reports  about  KING  GEORGE  V 
since  2  Oct..  According  to  press  reports,  she  may  be  in  the  In- 
dian Ocean. 

On  7  Dec.  a  cruiser,  probably  SHEFFIELD,  received  orders  to  pro- 
ceed to  Kola  Bay. 

Own  Situation: 

Nothing  to  report. 

2.  Norway : 

Enemy  Situation: 

Aerial  photographs  of  10  Dec.  show  that  the  coastal 
waters  between  Byelomorsk  and  Pongoma,  approximately  100  miles 
wide,  are  frozen  over.  No  navigational  channel  can  be  seen. 
Radio  telephone  conversations  confirmed  that  there  still  are 
submarines  in  the  area  off  Hammerfest.  Decoding  of  a  British 
Admiralty  radio  report  of  17  Oct.  reveals  the  following:  A  con- 
voy of  three  steamers  proceeding  eastward  was  attacked  on  11  Oct. 
off  North  Cape  by  submarine  TIGRIS.   Three  probable  hits  were 
scorecV.  A  convoy  of  three  steamers  proceeding  westward  was  at- 


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9862 


11  Dec.  19-41  CONFIDENTIAL 

tacked  at  the  same  place  and  presumably  by  the  same  submarine  on 
14  Oct..   One  certain  and  two  probable  hits  were  scored. 

Own  Situation; 

The  8th  Destroyer  Flotilla  and  TANGA  could  not  enter 
Kirkenes  because  of  fog.   The  ships  proceeded  to  Vadsoe  since  visi- 
bility and  wire  communication  facilities  were  better  there. 
LUEDERITZ  started  on  her  trip  to  Bodoe  unaccompanied.   Rolfsoe 
Sound  and  Reppe  Fjord  were  closed  to  shipping  because  of  suspected 
mines  in  these  waters.  An  artillery  duel  between  submarine  chaser 
"1212"  and  a  submarine  took  place  north  of  Haramerfest.  Results 
have  not  yet  been  reported.  Coastal  Battery  "Loedingen"  is  ready 
for  action  in  an  emergency.  There  can  be  no  doubt  that  the  steamer 
STEINBECK  was  hit  and  sunk  by  a  torpedo. 


IV.  Skaggerrak,  Baltic  Sea  Entrances,  Baltic  Sea; 

Nothing  to  report. 

According  to  the  German  Naval  Attache  at  Helsinki,  Field  Marshal 
Mannerheira  gave  an  "Order  of  the  Day"  commemorating  the  occupation 
of  Hangoe.   In  it  he  has  words  of  high  praise  for  the  German  air 
and  naval  forces  which  played  such  a  decisive  role  in  the  conquest 
of  the  island.   The  Commander  in  Chief,  Navy  will  convey  his  ap- 
preciation to  the  Field  Marshal. 


V.   Submarine  Warfare 

1.  Enemy  Situation; 

At  1400  a  British  plane  tracked  a  submarine  west  of  the 
Faroe  Islands  at  60°  57'  N,  12°  57'  W. 

Convoy  OG  77  passed  43°  N  33°  W  probably  on  8  Dec.  Radio  sta- 
tion Annapolis  announced  that  a  mine  field  has  been  laid  in  the 
approaches  to  New  York  harbor. 

2.  Own  Situation: 

Submarines  located  in  the  vicinity  were  ordered  into 
action  against  a  convoy  proceeding  to  Lisbon.   Submarine  U  "434" 
reported  sinking  three  steamers  of  the  convoy,  a  total  of  25,000 
BRT.   Submarine  U  "374"  sank  two  ships  off  Ceuta  within  her  pa- 
trol area. 

The  sequence  for  supply  of  submarines  at  "Bernardo"  from  11  Dec. 
to  15  Dec.  is  as  follows;  U  "574",  "575",  "332"  and  "434".  Naval 


-108-  9862 


11  Dec.    19*U 


CONFIDENTIAL 


# 


Staff  has  no  objections  to  an  underwater  approach  by  the  subma- 
rines. This  maneuver  was  tried  twice  so  far  and  was  successful 
each  time.   (See  Radiogram  1616.) 

The  German  Naval  Command,  Italy  requested  review  and  possibly 
rescission  of  the  order  transferring  Italian  submarines  from  the 
Atlantic  to  the  Mediterranean  (see  War  Diary  10  Dec).  Naval 
Staff  answers  this  request  as  follows:  Transport  of  supplies  and 
reinforcements  from  Italy  to  North  Africa  has  top  priority  at  this 
time.   It  is  therefore  desired  that  the  Italians  be  given  all  pos- 
sible assistance  in  their  plans  for  transferring  submarines  from 
the  Atlantic  to  the  Mediterranean  where  they  will  be  used  for 
transport  purposes.   (See  Radiogram  1717.) 

The  German  Armistice  Commission  reports  that  the  French  requested 
assurance  that  steamer  ST.  DENIS  was  not  sunk  by  an  Axis  submarine 

For  a  comprehensive  report  on  submarine  warfare  in  the  North  and 
South  Atlantic  as  well  as  in  the  Mediterranean  and  the  Aegean  Sea, 
see  War  Diary,  Part  B,  Vol.  IV.  An  analysis  of  the  situation  by 
the  Commanding  Admiral  of  Submarines  is  attached  to  the  report. 


♦ 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

Twenty  five  of  our  planes  were  on  a  mine- laying  mission 
during  the  night  of  11  Dec.  Mines  were  laid  in  the  mouth  of  the 
Humber.  Forty  eight  enemy  raids  into  the  Reich.  Main  points  of 
attack  were  Frankfurt,  Wiesbaden,  Mannheim.  Air  raids  on  Le  Havre 
and  Brest.  Reports  of  damage  have  not  yet  been  received.  The  Ger- 
man Army  Radio  Deciphering  Service  reports  that  convoy  control 
station  Aberdeen  confirmed  the  sinking  of  transport  vessels  XH,  XP, 
YS  and  XU  on  10  Dec.  and  furthermore  reported  that  three  other 
transport  vessels  arrived  heavily  damaged  at  Newburgh.  These  ships 
were  damaged  by  three  planes  of  the  1st  Fighter  Group,  Squadron  26, 
off  Dundee  on  o  Dec.  (see  War  Diary  8  Dec;. 

2.  Mediterranean  Theater: 

Two  German  transport  planes  on  a  flight  from  Derna  to 
Athens  were  shot  down  by  British  pursuit  planes. 

3.  Eastern  Front: 


Army. 


Fairly  strong  Air  Force  operations  in  support  of  the 


-109- 


9862 


11  Dec.  19^1  CONFIDENTIAL 

VII.  Warfare  In  the  Mediterranean 

1.  Enemy  Situation; 

Western  Mediterranean: 

All  vessels  of  Task  Force  H  are  again  in  Gibraltar.  Ac- 
cording to  a  report  from  Spanish  source,  thirty  ships  have  "been 
expected  to  leave  at  any  time  since  28  Nov. 

Central  and  Eastern  Mediterranean: 

Two  cruisers  and  two  destroyers  were  sighted  10  miles 
southeast  of  Malta  heading  southeast.  Radio  intelligence  lo- 
cated several  unaccompanied  vessels  at  sea  between  Alexandria  and 
Tobruk.  British  submarines  were  sighted  or  located  in  several  in- 
stances . 

2.  Situation  Italy: 
Nothing  to  report. 

5.   Transport  of  Supplies  to  North  Africa: 

The  steamer  SPECIA  arrived  in  Benghazi.   Other  trans- 
ports were  considerably  delayed  by  weather  conditions. 

4.   Area  Naval  Group  South: 

Aegean  Sea: 

During  an  enemy  submarine  attack  on  the  convoy  of  steam- 
ers ELLY  and  ARKA,  the  torpedo  bo.at  ALCIONE  was  heavily  damaged 
and  beached  off  Suda. 

Black  Sea: 

Nothing  to  report. 


VIII.  Situation  East  Asia 

1.   Enemy  Situation: 

The  United  States  War  Department  announced  attacks  by 
Japanese  army,  air  and  naval  forces  on  the  western  coast  of  Luzon 
between  San  Fernando  and  Vlgan.  Further  announced  was  an  attack 
by  American  bombers  on  the  Japanese  transport  vessels  off  Vigan. 
Five  transports  are  said  to  have  been  damaged  and  another  one 
sunk.  Reuter  announced  that  the  Philippines  were  the  target  of 
enemy  air  raids  all  day.  The  naval  base  Cavite  was  the  main  target 
of  enemy  bombings.  The  Japanese  also  are  33. id  to  have  landed  on  the 
northern  coast  of  Luzon.  British  Headquarters  in  Singapore  reports 
that  enemy  attacks  by  air  and  land  are  con-'.nuing  in  northern 
Malaya  and  that  the  Japanese  made  a  landing  attempt  on  the  east 


-110-  9862 


11  Dec.  1941  CONFIDENTIAL 

coast  of  the  peninsula  near  Kuantan.  A  French  report  states  that 
Tsingtao  has  been  occupied  by  the  Japanese..  Naval  and  air  rein- 
forcements from  the  Dutch  East  Indies  arrived  in  Singapore.  Radio 
station  Daventry  reports  that  three  bomb  hits  vere  scored  by 
American  planes  on  the  HARUNA  north  of  Luzon.  The  ship  is  said  to 
have  been  set  afire  and  sunk. 

2.   Situation  Japan: 

Japanese  Headquarters  reports  that  Japanese  landings 
took  place  on  the  Philippines.  The  air  base  at  Nichols  Field  was 
successfully  attacked.  A  U.S.  transport  vessel  was  sunk  in  Manila 
.Bay  by  submarine.  A  British  steamer  was  taken  as  prize  off  Hong 
Kong.  Further  reports  state  that  Japanese  troops  made  a  success- 
ful landing  on  Guam,  a  U.S.  submarine  was  sunk  off  Palau,  and  a 
British  patrol  vessel  was  sunk  off  Hong  Kong.  Japanese  losses  are 
given  as  two  transport  vessels  without  loss  of  personnel.   It  is 
denied  that  a  Japanese  aircraft  carrier  was  sunk  off  Hawaii. 

No  reliable  reports  are  available  about  the  sinking  of  the  U.S. 
carrier  LEXINGTON  and  the  British  battleship  KING  GEORGE  V. 

The  Japanese  Chief  of  Naval  Staff  Nagano  himself  explained  to  the 
German  Naval  Attache  the  action  that  took  place  off  Cape  Kuantan. 
According  to  his  explanation  the  following  took  place:  PRINCE  OF 
WALES,  REPULSE  and  four  destroyers,  all  on  north  northwest  course, 
were  first  sighted  in  105°  West  by  submarines  patrolling  a  line  in 
5°  North.  Air  reconnaissance  was  dispatched  but  lost  contact  with 
the  British  force  during  the  night.  The  British  obviously  steered 
a  more  northerly  course  and  then  reversed  course  to  be  sighted  a- 
gain  by  the  Japanese  submarine  line  on  10  Dec.  at  0^40  in  5°  North 
and  104°  30 »  East  on  southerly  course.  At  1115  air  patrols  con- 
tacted the  enemy  in  4°  North  in  the  same  longitude.  The  British 
ships  were  proceeding  on  a  southerly  course  at  full  speed.  The 
alarm  was  sounded  and  J>k   bombers  and  51  torpedo  planes  left  from 
Saigon.   These  planes  then  began  the  attack  at  1310.   REPULSE 
sank  thirty  minutes  later  and  PRINCE  OF  WALES  sank  at  1450. 

Attack  Maneuver: 

Bombers  attacked  first  in  order  to  tie  down  anti-aircraft  artil- 
lery. Shortly  afterwards  came  the  attack  by  the  torpedo  planes 
from  east  and  west.   Only  three  Japanese  planes  were  lost.  The 
planes  landed  on  newly  conquered  airfields  in  Malaya.  The  British 
defense  was  termed  very  weak.   Japanese  naval  forces,  mostly 
cruisers,  which  were  stationed  south  of  Cape  Cambodia  could  not 
arrive  in  time  to  take  part  in  the  engagement.  The  operation  was 
under  the  command  of  Admiral  Kondo.  The  Hawaii  operations  are 
under  the  command  of  Fleet  Commander  Admiral  Yamamoto.  Nagano 
finished  his  explanation  with  the  words:   "The  BISMARCK  has  been 
avenged,  and  this  is  only  the  beginning.  My  very  best  regards  to 
the  Grand  Admiral."  The  leading  personality,  and  the  one  who 
prepared  the  start  of  the  whole  campaign  in  an  exemplary  way,  is 
Vice  Admiral  Ito. 


-Ill-  9862 


11  Dec.  19^1  CONFIDENTIAL 

IX.  Army  Situation 

1.  Russian  Front: 

Southern  Army  Group: 

Fairly  weak  enemy  attacks  in  strength  up  to  one  regiment 
were  repulsed  at  the  1st  Armored  Army  sector.  At  the  17th  Army 
sector  the  front  was  shortened  in  some  places.  Nothing  worth  men- 
tioning occurred  at  the  6th  Army  sector. 

Central  Army  Group: 

Heavy  enemy  forces  closely  follow  the  southern  flank  of 
the  2nd  Armored  Army.   Sustained  enemy  pressure  west  of  Moscow  in 
the  area  around  Klin  and  southeast  of  Kalinin.  The  enemy  pene- 
trated our  lines  in  several  places.  Withdrawal  to  rear  positions 
generally  according  to  plan. 

Northern  Army  Group: 

Isolated  enemy  attacks  were  repulsed. 

2.  Finnish  and  Norwegian  Front: 
Nothing  to  report. 

2.   North  Africa: 

The  2nd  South  African  Infantry  Division  seems  to  he 
preparing  an  attack  on  Bard ia- Solium- Hal faya  from  the  west. 

Enemy  outposts  and  patrols  were  active  in  the  Ain  el  Gazala  sec- 
tor in  an  attempt  to  establish  contact  with  Italian  units. 

The  Commanding  Officer  of  the  90th  Light  Division  was  killed. 


*****♦*♦***♦****♦*#**♦**# 


-112- 


CONFIDENTIAL 

12  Dec.  1941 

Items  of  Political  Importance 

Great  Britain: 

Churchill  made  a  speech  in  the  House  of  Commons  in  vhich  he  brought 
out  the  following  points : 

A  second  phase  is  about  to  begin  in  the  Libyan  campaign  now  that 
reinforcements  have  arrived.  As  the  result  of  unexpectedly  strong 
and  skillful  German  resistance  the  first  phase  was  much  costlier 
than  had  been  expected.  The  Battle  of  the  Atlantic  is  progressing 
as  much  as  ever  in  Britain's  favor.  Heavy  losses  in  Russia  have 
forced  the  German  Army  into  a  defensive  position.  This  campaign 
is  one  of  the  gravest  errors  in  German  policy.  As  for  the  Far 
Eastern  Campaign,  Britain  hardly  ever  before  sustained  so  heavy 
and  grievous  a  loss  at  sea  as  that  of  the  two  battleships. 

The  Prime  Minister  closed  with  the  remark  that  it  would  be  a  dis- 
grace not  to  be  able  to  teach  the  German  Party  Organization,  that 
most  despicable  of  evils  of  mankind,  a  lesson  which  the  world  will 
not  forget  for  a  thousand  years  to  come. 

According  to  press  reports  the  Ministry  of  Economic  Warfare  declar- 
ed that  the  war  against  Japan  cannot  be  won  by  a  blockade  alone. 
Japan  would  be  able  to  stand  total  war  for  at  least  a  year,  and  if 
new  sources  of  raw  materials  are  opened  up,  for  four  or  five  years. 

Portugal : 

According  to  sources  close  to  British  Embassy  circles,  the  Portu- 
guese Government  is  being  sounded  out  whether  it  would  agree  to 
entrust  Britain  with  the  protection  of  her  Far  Eastern  possessions 
(Goa,  Diu,  Daman,  Macao,  and  Timor).  The  Portuguese  Government 
shows  little  inclination  to  such  an  agreement  and  hopes  that  Japan 
will  respect  Portuguese  sovereignty  rights. 

U.S.S.R. : 

Diplomatic  sources  report  that  great  self-confidence  is  evident 
in  Moscow  concerning  the  outcome  of  the  fighting. 

Hungary : 

The  Government  has  broken  off  diplomatic  relations  with  the  United 
States. 

Turkey; 

The  Italian  Government  proposed  to  Ankara  that  a  new  Friendship 
Pact  be  signed  as  substitute  for  the  one  expiring  in  April  1942. 
Press  reports  state  that  there  is  little  inclination  on  the  part 
of  Turkey  to  conclude  an  alliance  of  such  intimate  nature  with 
the  Axis  at  this  time. 


-113- 


9862 


12  Dec.  19^1  CONFIDENTIAL 

U.S.A. : 

The  enthusiastic  ovation  which  the  President  received  in  Congress 
is  said  to  reflect  U.S.  public  opinion.  A  diplomatic  report  states 
that  there  is  no  more  opposition,  and  goes  on  to  say  that  the 
United  States  Government  obviously  expects  Russia  to  participate 
in  the  war  against  Japan.  But  Lit vino v  is  said  to  have  made  a  very 
evasive  statement.  There  is  no  doubt  in  the  public's  mind  about 
the  seriousness  of  the  situation  in  the  Pacific  (in  view  of  the  sur- 
prising Japanese  successes  in  Hawaii.   The  significance  of  the 
losses  is  not  denied.   There  is  a  pronounced  tendency  to  blame 
Germany  as  the  chief  instigator  of  the  war  who  has  lead  Japan  a- 
stray.  Russia's  attitude  is  being  watched  with  great  interest. 

Thailand ; 

It  was  officially  announced  that  Japan  and  Thailand  signed  a  full 
military  alliance. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 
No  special  reports  or  decisions. 


Special  Items: 

I.  Italian  Fuel  Oil  Supplies: 

The  Armed  Forces  High  Command,  War  Industries  and  Supplies  Section 
informed  the  Italian  Armed  Forces  High  Command  through  the  German 
General  at  Headquarters  of  the  Italian  Armed  Forces  that  the  Ger- 
man Navy  will  send  only  two  shipments  of  30,000  tons  fuel  oil  and 
not  three  as  was  erroneously  assumed.  Both  shipments  are  under  way 
at  the  present  time.  Rumanian  shipments  are  behind  schedule  not 
because  Rumania  failed  to  produce  enough  oil  but  because  her  home 
consumption  is  excessive.  A  change  in  this  situation  is  definitely 
promised.  German  representatives  are  in  Bucharest  at  this  very  (j| 

moment.  They  are  doing  their  utmost  to  persuade  the  Rumanians  to 
release  a  considerable  amount  of  fuel  oil  to  Italy  before  the  end 
of  this  month.   The  subsequent  supply  situation  of  the  Italian  Navy 
will  be  one  of  the  topics  of  discussion  at  the  forthcoming  confer- 
ence of  the  German  and  Italian  Naval  Staffs.   See  War  Diary,  Part  C, 
Vol.  IX  for  exact  text  of  the  message  as  received  from  Naval  Staff, 
Quartermaster  Division,  Supplies  (Ski  Qu.  A.  IIIc  9734/geh.). 

II.  Independent  versus  Naval  Air  Force? 

See  News  Analysis  "Foreign  Navies"  No.  44  for  report  on  the  first 
mobilization  measures  in  the  United  States.  The  same  volume  con- 
tains an  article  by  Rear  Admiral  Yarnell,  U.S.N,  (ret.)  which  ap- 
peared in  the  magazine  Collins  (Colliers?  Tr.N.)  on  15  Nov.  1941. 


•114. 


9862 


12  Dec.  192*!  CONFIDENTIAL 

This  article  is  a  critique  of  the  R.A.F.  Admiral  Yarnell  takes  up 
one  by  one  the  few  successes  scored  by  the  R.A.F.  and  goes  on  to 
say  that  these  vould  have  been  far  greater  and  the  numerous  errors 
and  failures  far  less  frequent  were  the  R.A.F.  not  an  "independent 
Air  Force "  but  an  integral  part  of  the  Army  and  Navy.  This  com- 
ment  becomes  significant  in  the  face  of  current  experiences  in  the 
war  against  Japan. 

III.  Enlargement  of  the  Finnish  Navy: 

The  German  Naval  Attache  at  Helsinki  submitted  detailed  proposals 
on  how  the  German  Navy  can  exert  influence  on  the  future  organiza- 
tion of  the  Finnish  Navy.  While  the  Naval  Staff  respects  the 
principles  contained  in  the  report,  they  believe  that  the  proposed 
assignment  of  Finnish  officers  to  the  German  Naval  Staff  and  the 
Group  Commands  would  constitute  an  unnecessary  encumbrance  for  these 
authorities.  The  Naval  Staff  believes  that  their  assignment  to  the 
various  frontal  sectors  would  be  more  to  the  point.  German  views 
concerning  the  development  of  strategy  and  operations  can  be  clear- 
ly defined  in  a  few  conferences.  Unfortunately  it  seems  as  though 
the  Naval  Attache  at  Helsinki  committed  himself  rather  definitely 
to  the  Finns  before  the  German  Naval  Staff  was  able  to  review  the 
matter.  It  is  recommended  that  henceforth  the  Naval  Staff,  Quarter- 
master Section,  and  the  Naval  Personnel  Office  participate  in  all 
such  matters. 

IV.  Overall  Situation  in  the  Defense  Industry: 

The  Armed  Forces  High  Command,  War  Economy  and  Armaments  Division 
gave  a  comprehensive  report  reflecting  grave  concern  over  how  long 
it  will  be  possible  to  maintain  production  at  a  sufficiently  high 
level.  Difficulties  are  increasing  from  month  to  month.  The  fol- 
lowing specific  problems  demand  attention: * 

An  overall  increase  in  production  is  out  of  the  question  at 
this  time.  Industrial  manpower  reserves  are  exhausted.  There  is 
great  confusion  in  regard  to  the  distribution  of  manpower  and  max- 
imum exploitation  of  productive  bapacity.  Signs  of  weariness. 
Lowering  of  workers  morale.  Transportation  conditions  are  criti- 
cal. The  coal  supply  is  becoming  extremely  low,  the  coal  reserves 
of  plants  are  exhausted  and  in  some  instances  it  has  become  neces- 
sary to  shut  down  factories  (even  in  essential  industries!!).   In- 
sufficient coal  deliveries  have  caused  serious  difficulties  in  the 
production  of  electric  power;   serious  complications  in  the  long 
distance  supply  of  gas;   considerable  disruption  of  production; 
the  motor  fuel  supply  is  insufficient  to  fill  the  needs  of  essen- 
tial industry.  The  fuel  shortage  considerably  affects  transpor- 
tation. The  transportation  situation  is  extremely  critical.   In 
some  respects  it  is  worse  than  it  has  ever  been. 

V.  The  Naval  Attache  at  Tokyo  transmits  the  following  message 
from  Admiral  Nagano: 

1.  Admiral  Nagano  requests  information  concerning  the 
aerial  torpedoes  which  Japan  made  available  to  Germany. 

2.  He  points  out  that  the  creation  of  an  independent  Jap- 


9862 

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12  Dec.  1941  CONFIDENTIAL 

anese  Air  Force  13  no  longer  an  acute  question. 

3.   He  expresses  hope  that  attacks  on  the  Suez  Canal  will  In- 
crease from  now  on  in  view  of  the  expected  transfer  of  British  na- 
val forces  from  the  Mediterranean  to  the  Pacific,  and  in  view  of 
the  lull  In  the  Russian  campaign. 

This  request  is  so  logical  that  it  was  to  be  expect- 
ed. But  since  the  German  Air  Force  suffers  from  a 
lack  of  fuel  it  is  imperative  that  our  hard-pressed 
land  forces  he  given  priority  on  air  support. 

VI.  The  Chief  of  Naval  Staff  had  a  conference  with  the  Fuehrer.. 
For  the  text  of  this  conference  see  War  Diary,  Part  C,  Vol.  VII. 
Entry  made  according  to  directive  from  Operations  Division,  Naval 
Staff  (1/Skl  lb  21^5/41  op  Gkdos.  Chefs. J. 


Situation  12  Dec.  194l 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation: 

Special  Items: 

See  Radio  Intelligence  Reports  (B-Berichte)  No.  49/41  of 

the  Naval  Staff,  Chief  of  Naval  Communications  (Radio  Intelligence), 

for  compilation  of  news  received  up  to  1  Dec.  1941  by  radio  moni- 
toring and  intelligence  services. 

North  Atlantic: 

Radio  monitoring  service  reports  that  U.S.  ships  in  the 
North  Atlantic  received  special  orders  about  painting  over  mark- 
ings revealing  their  identity,  radio  silence,  navigation  lights, 
etc..  A  mine  field  was  laid  off  Chesapeake  Bay.   Three  U.S.  sub- 
marines left  Bermuda  on  9  Dec.  headed  for  the  Bristol  Channel.   A 
cruiser,  probably  the  NAJAD,  is  on  her  way  to  Gibraltar  from  the  C 

West  Indies. 

Radio  London  reports:  All  British  naval  bases  have  been  put  at 
the  disposition  of  the  U.S.;  all  U.S.  bases  at  the  disposition 
of  the  British  naval  forces.  The  U.S.  Export  Line  has  discontin- 
ued service. 

South  Atlantic: 

Radio  Boston  states  that  ships  can  pass  through  the  Pan- 
ama Canal  only  between  the  hours  of  0600  and  1800.   OMAHA  and 
SOMERS  left  Pernambuco.  An  unidentified  U.S.  destroyer  arrived 
at  Natal  on  7  Dec.  and  additional  ships  are  expected  there.  Radio 
deciphering  service  located  ASTURIAS  east  of  Bahia  and  ROYAL 
SOVEREIGN  on  convoy  duty  in  the  South  Atlantic. 


9862 

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12  Dec.  19^1  CONFIDENTIAL 

Pacific  Ocean: 

According  to  press  reports  the  Chilean  Government  has 
put  all  Chilean  harbors  at  the  disposition  of  U.S.  vessels. 

2.   Own  Situation; 

The  Naval  Attache  at  Tokyo  relayed  a  request  from  the 
Japanese  Navy  to  let  the  PORTLAND  pass  north  of  Hawaii.   She  is  to 
be  met  and  escorted  by  Japanese  na*val  forces  (see  Radiogram  1747). 

Radiogram  0016  gives  corresponding  directives  to  the  PORTLAND. 

Reports  on  the  enemy's  situation  were  received  by  Radiograms  0531, 
1154,  and  2200. 


II.   Situation  West  Area 

1.  Enemy  Situation; 

Air  reconnaissance  sighted  a  convoy  of  six  steamers  on 
southward  course  south  of  Milford. 

2.  Own  Situation; 

Atlantic  Coast; 

During  the  enemy  air  raids  on  Brest  (see  War  Diary,  11 
Dec.)  the  evening  of  11  Dec.  in  which  about  ten  planes  partici- 
pated, one  bomb  out  of  a  series  of  six  landed  in  the  water  "approx- 
imately 20  meters  in  front  of  the  SCHARNHORST ' s  bow.  Lannion  bore 
the  brunt  of  the  attack.  Between  15  and  20  enemy  planes  renewed 
the  attack  on  12  Dec  It  lasted  from  1856  to  2202.  Fifty  high 
explosive  bombs  fell  in  the  harbor  area  and  the  air  base  at  Brest 
South.  No  large  vessels  were  damaged. 

Further  heavy  attacks  on  Brest  are  to  be  expected. 
The  enemy  is  determined  to  try  everything  .to  crip- 
ple our  heavy  vessels  in  order  to  enable  British 
heavy  vessels  to  proceed  to  the  Far  East. 

The  Naval  Staff  agrees  with  the  proposal  from  Commanding  Admiral, 
France  concerning  operations  of  the  decoy  vessel  SILU.   It  is  en- 
tirely up  to  Group  Command  West  how  to  use  this  vessel.   (See 
Radiogram  1230. ) 

Channel  Coast; 

Enemy  air  activity  in  the  evening  of  11  Dec.  in  the  Dun- 
kirk area  and  along  the  entire  Belgian  coast.  No  bombing.  One 
enemy  plane  was  shot  down  by  naval  anti-aircraft  artillery.  Ten 
bombs  fell  on  Le  Havre  during  the  attack.  No  damage. 


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9862 


12  Dec.  19^1  CONFIDENTIAL 

III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

The  steamer  MARIENTHAL,  sailing  unescorted,  was  attacked 
"by  enemy  planes  off  Vangeroog  Island.   Otherwise  nothing  to  report. 

2.  Norway: 

Enemy  Situation; 

From  monitoring  radio  telephone  conversations  we  learned 
that  a  group  of  British  submarines  was  located  off  Haramerfest  and 
a  group  of  Russian  submarines  off  Cape  Nordkyn  in  the  evening  of 
11  Dec. 

Own  Situation; 

Weather  conditions  prevent  arrival  of  the  8th  Destroyer 
Flotilla  and  TANGA  at  Kirkenes.   Submarines  U  "134"  and  U  "45V' 
arrived  at  Kirkenes.   LUEDERITZ  and  the  8th  PT  Boat  Flotilla  ar- 
rived at  Bodoe.   Submarine  chasers  "1211"  and  "1212"  engaged  an 
enemy  submarine  in  an  artillery  duel.   The  enemy  submarine  had  pre- 
viously sunk  two  Norwegian  cutters.  After  it  submerged  it  was  at- 
tacked with  depth  charges  and  was  presumably  damaged.   The  sea  area 
off  Myling  was  closed  to  shipping  because  mines  are  suspected  in 
those  waters.   Minesweeper  BALI  ran  aground  and  was  towed  to  Trom- 
soe  with  a  damaged  screw.   Radio  station  Gamvik  burned  down  on  10 
Dec;  All  equipment  was  lost.  Fire  most  likely  caused  by  negli- 
gence. Since  2  Dec.  the  torpedo  batteries  at  Korshavn  and  Porsoe 
are  ready  for  action  in  case  of  emergency.  The  inner  Petsamo 
Fjord  is  only  navigable  with  the  aid  of  icebreakers.   Our  convoy 
was  unsuccessfully  attacked  by  enemy  planes  off  Obrestad  on  11  Dec. 

After  the  arrival  of  submarine  U  "134"  it  was  determined  that  the 
steamer  STEINBECK  was  sunk  by  this  submarine  on  9  Dec.  According 
to  the  Commanding  Admiral,  Arctic  Ocean,  the  commanders  of  U  "134 
and  U  "454"  had  presumably  not  been  informed  about  our  own  coastal 
convoys  and  were  not  provided  with  code  equipment  or  the  radio  com- 
munication schedule  for  the  Arctic  coast. 

This  tragic  failure  demands  a  thorough  investiga-  ( 

tion  by  a  military  court  of  inquiry. 

The  War  Diary  of  the  Admiral,  Arctic  Ocean  for  20  Oct..  contains 
incorrect  data  in  its  representation  of  the  initial  situation. 
This  must  be  charged  to  insufficient  information.  The  Naval  Staff 
wishes  to  make  it  understood  that  the  Navy  is  in  no  way  responsible 
for  the  failure  of  the  Army  attack  on  Murmansk.  The  offensive  was 
not  successful  because  the  forces  used  were  too  small  from  the  very 
beginning.   Only  later  on  did  the  Navy  receive  requests  to  bring  up 
supplies  and  troop  reinforcements  by  sea,  and  this  was  done  to  the 
best  of  our  ability  until  the  Armed  Forces  High  Command  decided,  on 
the  basis  of  considerable  losses,  that  the  risk  was  too  great  and 
that  the  operation  should  therefore  be  discontinued.  The  Naval  Staff 
had  always  stressed  the  risk  that  would  be  involved.  Group  Command 


-118- 


12  Dec.  194l  CONFIDENTIAL 

North,  Commanding  Admiral,  Norway  and  Admiral,  Arctic  Ocean  have 
been  informed  of  this  view.   It  was  added  to  the  War  Diary  of  the 
Admiral,  Arctic  Ocean.  For  text  of  the  message  see  entry  in  War 
Diary,  Part  C,  Vol.  Ha,  as  per  Naval  Staff,  Operations  Division, 
Northern  Operations  Section,  l/Skl  I  Nord  28001/41  Gkdos. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea; 

i 

The  Swedish  steamer  DERNIA  and  the  German  steamer  FORTUNA  were 
caught  in  the  Gjedser  net  barrage. 

Otherwise  nothing  to  report. 


V.   Merchant  Shipping; 

The  Naval  Staff,  Naval  Intelligence  Division  estimated  the  total 
tonnage  of  U.S.  East  Asia  lines  at  1.2  million  BRT,  or  220  ships, 
at  the  beginning  of  Nov..  At  the  outbreak  of  war,  only  24  of 
these  ships  (160,000  BRT)  were  at  sea  in  areas  where  the  Japanese 
could  seize  them.   15  of  them  (105,000  BRT)  were  homeward  bound 
for  the  U.S.  Vest  Coast.  Nor  were  there  many  Japanese  ships  out- 
side the  Japanese  sphere  of  influence  at  the  outbreak  of  hostili- 
ties. According  to  the  Naval  Staff,  Naval  Intelligence  Division 
there  were  only  eight  such  Japanese  ships  (approximately  60,000 
BRT). 

Digest-  No.  54  of  the  "Foreign  Merchant  Shipping"  news  series  by 
Naval  Staff,  Naval  Intelligence  Division  contains  the  following; 

Names  of  Japanese  and  American  ships  in  question;   report 
about  institution  of  prize  courts  at  Tokyo,  Yokosuka,  and  Sasebo; 
report  about  the  regulation  forbidding  Portuguese  ships  to  sail 
to  the  U.S.;  backlog  of  orders  for  merchant  ship  construction  in 
the  U.S.;  armament  of  U.S.  merchantmen;   limitation  of  Turkish 
coastal  shipping. 


VI.   Submarine  Warfare 

1.   Enemy  Situation; 

On  10  Dec.  a  convoy,  course  unknown,  was  proceeding  at 
12  knots  northwest  of  Porcupine  Bank.  A  British  patrol  vessel 
asked  for  pursuit  plane  cover  20  miles  south  of  Lisbon.  This  was 
presumably  near  convoy  0G  77.  The  British  naval  vessel  ROSABELLA 
exploded  in  the  Gibraltar  area  on  10  Dec.  According  to  a  Span- 
ish report  five  auxiliary  cruisers,  which  could  be  used  for  trans- 
port purposes,  are  lying  in  Gibraltar. 


-119- 


12  Dec.  19^1  CONFIDENTIAL 

2.   Own  Situation; 

The  Chief  of  Staff,  Naval  Staff  and  the  German  Admiral, 
Rome  conferred  by  telephone.  As  a  result  the  power  of  decision 
regarding  the  transfer  of  Italian  submarines  from  the  Atlantic 
to  the  Mediterranean,  for  purposes  of  transport  of  supplies  to 
North  Africa,  was  transferred  to  the  German  Admiral,  Rome.  This 
was  done  because  conditions  which  formed  the  basis  of  the  previous 
directive  from  the  Naval  Staff  will  not  be  in  existence  (see 
Radiogram  1313).   (Cf.  War  Diary  7,  10,  and  11  Dec.) 

According  to  the  German  Armistice  Commission,  France,  the  French 
assume  that  the  steamer  ST.  DENIS  was  sunk  by  the  British.   They 
plan  a  submarine  chase  in  the  area  off  the  Spanish  and  French 
coasts,  bounded  by  the  5th  Meridian  on  the  east  and  the  line  be- 
tween 380  20'  N  and  Cape  Palos  on  the  south  (see  Radiogram  2127). 
Three  men  of  the  ST.  DENIS  are  missing. 

The  German  Naval  Command,  Italy  has  ordered  all  available  German 
submarines  to  take  their  stations  off  Alexandria.   This  measure         / 
is  designed  to  keep  British  forces  from  leaving  Alexandria  and  V 

interfering  with  the  planned  Italian  operation  of  escorting  two 
convoys  to  Tripoli  and  Benghazi. 

For  the  corresponding  operational  order  from  Operations  Division, 
Naval  Staff  (l/Skl  op  2123/1*1  Gkdos .  Chefs.)  see  War  Diary,  Part  C, 
Vol.  XIV. 

See  War  Diary,  Part  B,  Vol.  IV  for  further  report  on  the  Atlantic 
and  Mediterranean  situation. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

See  Situation  Western  Area  for  details  on  the  enemy  day- 
light raid  on  Brest.  An  enemy  steamer  (9,000  BRT)  was  damaged  off 
Lisbon  by  armed  long  range  reconnaissance.  Twenty  three  of  our 
planes  laid  mines  in  the  Humber  estuary  during  the  night  of  12  Dec. 
Seven  planes  went  on  armed  sea  reconnaissance  missions.   A  convoy 
was  attacked  without  success. 

2.  Mediterranean  Theater: 

Lively  enemy  air  activity  in  the  Crete-Greece  area. 
80  to  100  high  explosive  bombs  were  dropped  during  enemy  air  raid 
on  the  airbase  at  Maleme  (Crete).   Only  small  damage  was  caused. 

3.  Eastern  Front: 

Normal  air  activity  in  support  of  Army  operations. 


9862 

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12  Dec.  194l  CONFIDENTIAL 

VIII.  Warfare  in  the  Mediterranean 

1 .  Enemy  Situation : 

Western  Mediterranean: 

HERMIONE  left  Gibraltar  for  the  Mediterranean  during  the 
night  of  11  Dec.   Otherwise  no  noteworthy  changes  in  the  number 
of  ships  lying  in  the  harbor.  Air  reconnaissance  reports  that  four 
destroyers  were  sighted  during  the  afternoon  proceeding  eastward  45 
miles  north  of  Cape  Bougie. 

Central  and  Eastern  Mediterranean: 

Air  reconnaissance  located  the  following  ships  in  Malta! 
4  light  cruisers  (one  of  them  in  dock),  4  destroyers,  and  approxi- 
mately 12  merchantmen  of  various  sizes.  Radio  monitors  intercepted 
a  report  from  British  air  reconnaissance  stating  that  two  merchant- 
men and  three  destroyers  were  sighted  on  a  northeast  course  30  miles 
south  of  Cape  Stilo  (Ionian  Sea).  According  to  Reuter  the  British 
Admiralty  announced  that  a  British  submarine  scored  three  torpedo 
hits  on  a  cruiser  which  presumably  sank  later  on.   This  was  one  of 
three  cruisers  proceeding  southward  in  the  central  Mediterranean. 
A  British  Admiralty  report  of  8  Dec.  states  that  British  naval  ves- 
sels shelled  and  sank  an  Italian  vessel  of  2,350  BRT  in  Pantellaria 
on  1  Dec.  (steamer  ADRIATICO?  -  see  War  Diary  1  Dec).   The  same 
report  states  that  the  transport  steamer  GLEN  ROY  which  was  badly 
damaged  on  12  Nov.  in  an  air  raid  off  Tobruk  arrived  in  the  harbor. 
German  air  reconnaissance  reported  at  noon  that  five  ships  were 
sighted  35  miles  north  of  Alexandria.   They  were  proceeding  west- 
ward at  high  speed. 

2.  Situation  Italy: 

Enemy  air  raid  on  Argostoli  on  11  Dec.  Air  raid  on 
Benghazi  the  same  evening. 

3.  Own  Situation: 

The  3rd  PT  Flotilla  left  Augusta  at  1630  in  accordance 
with  orders  issued  by  the  German  Naval  Command,  Italy,  because 
enemy  ships  are  suspected  of  leaving  Malta.  For  the  operational 
order  from  the  German  Naval  Command,  Italy,  see  War  Diary,  Part  C, 
Vol.  XIV.   Entry  made  as  per  Operations  Division,  Naval  Staff, 
l/Skl  I  op  2116/41  Gkdos.  Chefs. 

4.  Transport  of  Supplies  to  North  Africa: 

The  steamer  GALITEA  was  sunk  by  an  enemy  submarine  in 
the  evening  of  11  Dec.  west  of  Cape  Matapan.  The  GALITEA  was 
armed  with  four  anti-aircraft  cannons  and  had  five  officers  and 
528  men  aboard.  Detailed  reports  are  still  missing.  The  CADORNA 
arrived  at  noon  of  11  Dec  in  Benghazi  and  left  again  a  few  hours 
later  for  Brindisi.  Transport  of  supplies  by  submarines  and  tor- 
pedo boats  continues.   The  cruisers  BARDIANO  and  GIUSSANO  left 
Palermo  in  the  evening  of  12  Dec  and  are  scheduled  to  arrive  in 


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9862 


12  Dec.  1941  CONFIDENTIAL 

Tripoli  on  13  Dec.  Two  convoys  are  scheduled  to  bring  goods  to 
Tripoli  and  Benghazi  within  the  next  few  days.   They  will  be  es- 
corted by  heavy  Italian  naval  forces  and  strong  German  and  Italian 
air  forces. 

5«   Area  Naval  Group  South: 

Aegean  Sea; 

Radiogram  06l4  received  from  Group  Command  South  reports 
on  the  development  of  Milos.   In  accordance  with  the  directives 
from  the  Naval  Staff  and  the  Armed  Forces  High  Command,  Operation- 
al Staff,  Air  (see  War  Diary  25  Nov.),  Milos  is  to  be  a  base  and  a 
port  of  refuge  for  ships  travelling  between  Piraeus  and  Crete. 
The  matter  is  in  the  hands  of  the  Naval  Staff,  Quartermaster  Di- 
vision. For  the  transportation  of  supplies  from  Bardia  to  the 
front,  three  more  auxiliary  sailing  vessels  have  been  designated 
by  the  Admiral,  Aegean  Sea,  and  three  naval  barges,  which  however 
are  not  available  at  the  moment,  by  the  German  Naval  Command, 
Italy.  Assault  boats  are  not  suited  for  this  purpose  since  their 
capacity  is  too  small  (see  Radiogram  2100). 

Black  Sea: 

Nothing  to  report. 


IX.   Situation  East  Asia 

1.   Enemy  Situation: 

Press  reports  state  that  the  U.S.  Secretary  of  the  Navy 
announced  the  sinking  of  the  Japanese  battleship  HARUNA  by  the 
Army  air  forces  off  the  northern  Philippine  coast.  The  Commander 
in  Chief  of  the  U.S.  Far  East  Fleet,  Admiral  Hart,  announced  that 
a  Japanese  KONGO  class  battleship  was  bombed  by  Navy  scout  planes 
and  badly  damaged.  A  further  report  from  the  U.S.  Navy  Department 
states  that  strong  Japanese  forces  again  made  a  landing  attempt 
on  the  northern  coast  of  Luzon  on  11  Dec.  These  attempts  were 
successfully  fought  off  at  Aparri  by  determined  resistance.   Jap- 
anese air  bombardment  of  the  military  and  naval  installations 
continues.   The  British  Headquarters  at  Singapore  report  that 
2,000  men  were  rescued  from  the  PRINCE  OF  WALES  and  REPULSE.   Ad- 
miral Sir  Thorn  Philipps  is  missing.   The  British  Admiralty  reports 
that  130  officers  and  2,200  men  of  the  total  170  officers  and 
2,755  men  of  the  two  battleships  were  rescued.  Radio  Daventry  re- 
ports that  Dutch  naval  vessels  joined  the  British  Far  East  Fleet. 
According  to  further  Anglo-Saxon  press  and  radio  reports  the  Jap- 
anese landed  at  Kuantan,  about  halfway  between  Singapore  and 
Kota  Bharu,  and  the  U.S.  admit  only  one  transport  vessel  sunk  by 
enemy  action.   Japanese  parachute  troops  are  said  to  have  landed 
at  Ilagan  air  base  on  Luzon.  Two  British  gunboats  were  sunk  by 
an  air  raid  near  Hong  Kong.  Vice  Admiral  Sir  Geoffrey  Layton  took 
over  the  command  of  the  British  Far  East  Fleet. 


-122- 


12  Dec.  1941  CONFIDENTIAL 

According  to  the  report  of  the  Japanese  Naval  Attache  at  Berlin 
concerning  the  distribution  of  British  and  U.S.  air  forces  in  the 
Far  East,  400  British  planes  can  be  expected  to  be  on  Malaya. 
The  Japanese  estimate  the  distribution  of  U.S.  naval  forces  as 
follovs:  1  heavy  cruiser,  2  light  cruisers,  15  destroyers  and  25 
submarines  in  the  Far  East;   8  battleships,  2  carriers,  11  heavy 
cruisers,  8  light  cruisers,  50  destroyers  and  20  submarines  in 
Hawaiian  waters;  1  battleship,  1  heavy  cruiser,  1  carrier,  10 
destroyers,  and  10  submarines  on  the  U.S.  West  Coast;  2  light 
cruisers,  5  destroyers,  12  submarines  in  the  Panama  Canal  zone; 
8  battleships,  5  heavy  cruisers,  4  carriers,  5  light  cruisers,  70 
destroyers  and  35  submarines  in  the  Atlantic;  2  light  cruisers 
and  3  destroyers  in  South  America. 

5  battleships,  including  2  of  the  latest  type,  4  new  light  cruisers, 

2  carriers,  and  several  destroyers  are  said  to  have  been  transferred 
from  the  Atlantic  to  the  Pacific,  and  15  submarines  supposedly  were 
transferred  from  Hawaii  to  the  Far  East.  Japanese  estimates  of  the 
losses  suffered  by  the  U.S.  Hawaii  forces  are:  2  battleships  sunk, 

3  badly  damaged  and  one  probably  sunk;  4  light  cruisers  of  newest 
type  badly  damaged. 

2.   Situation  Japan; 

.'  cording  to  the  German  Naval  Attache  at  Tokyo,  the  oc- 
cupation of  Kowloon  on  the  Hong  Kong  Front  is  nearly  completed, 
the  pow&4.;  station  has  been  destroyed  and  the  city's  water  supply 
disrupted . 

On  Luzon,  Japanese  troops  penetrated  40  km  inland  without  meet- 
ing resistance.  Only  U.S.  submarines  are  still  lying  in  Cavite. 
The  cruisers  are  said  to  have  withdrawn  to  Australia.   Operations 
against  Singapore  are  proceeding  according  to  plan.  All  entrances 
to  the  Sea  of  Japan  are  effectively  blocked  and  thus  Vladivostok 
is  inaccessible  too.  According  to  the  Japanese  Naval  Attache  at 
Berlin,  Japanese  Headquarters  deny  that  the  HARUNA  was  damaged. 
Only  one  light  cruiser  is  said  to  have  been  slightly  damaged  in 
the  Manila  area,  but  not  enough  to  interfere  with  its  operation; 
one  submarine  chaser  or  minesweeper  sunk,  and  another  one  damaged. 
202  enemy  planes  are  said  to  have  been  shot  down  over  the  Philip- 
pines without  a  single  Japanese  loss.  More  Japanese  troops  land- 
ed on  the  southern  coast  of  Luzon  on  12  Dee- 

Further  communiques  from  Japanese  Headquarters  published  by  the 
press  state  that  Agana,  the  capital  of  Guam,  has  been  occupied. 
One  U.S.  destroyer  and  a  submarine  were  sunk  at  Manila  and  one 
transport  vessel  damaged.  The  U.S. -Hong  Kong  cable  was  cut. 
The  Japanese  Navy  designates  the  successful  operations  off  Hawaii 
and  Malaya  as  "Naval  Battle  of  Hawaii"  and  "Naval  Battle  off 
Malaya". 


-123- 


9662 


12  Dec.  19^1  CONFIDENTIAL 

X.   Army  Situation 

1.  Russian  Front: 

Southern  Army  Group: 

Strong  enemy  attacks  primarily  against  the  southern 
flank  of  the  17th  Army  under  cover  of  fog.  Only  local  attacks 
against  the  1st  Armored  Army. 

Central  Army  Group: 

The  enemy  penetration  northeast  of  Livny'was  extended 
to  the  north.  The  transfer  of  fresh  troops  from  the  area  east 
and  northeast  of  Kharkov  and  the  formation  of  a  new  Russian  Army 
Staff  Indicate  that  new  offensives  are  planned  for  this  sector. 
Northwest  of  Moscow  and  to  both  sides  of  Kalinin  strong  but  in 
the  main  unsuccessful  enemy  attacks  are  continuing. 

Northern  Army  Group: 

West  of  Tikhvin  the  enemy  is  closely  following  our 
withdrawing  forces.  The  enemy  is  reinforcing  his  Neva  front. 
The  XXXIV  Army  Corps  withdrew  to  new  western  positions. 

2.  Finnish  and  Norwegian  Front: 
Situation  substantially  unchanged. 

3.  North  Africa: 

Enemy  forces  supported  by  tanks  attacked  our  eastern 
Ain  el  Gazala  positions  on  11  Dec.  but  were  repulsed.  A  with- 
drawal of  the  Italian  Division  from  the  eastern  to  a  western 
position  is  scheduled  for  the  night  of  11  Dec.  The  enemy  suc- 
ceeded in  breaking  into  the  line  of  the  Italian  Motorized  Corps 
on  12  Dec.  The  situation  was  restored  by  the  German  Afrika 
Korps  which  also  had  to  fight  off  enemy  attacks  on  its  front 
and  flank.  Enemy  patrol  activity  was  detected  75  km  southeast 
of  Syrte  (Zafran)  and  kO   km  south  of  Agedabia.  The  region  east 
of  Derna  is  being  cleared  of  supply  depots  according  to  plan. 


*#»»**♦*###»♦♦**#»*»*♦♦#* 


~12k-  9862 


CONFIDENTIAL 

13  Dec.  1941 

Items  of  Political  Importance 

France: 

Vice  Admiral  Fenard,  who  was  named  Secretary  General  for  Africa, 
is  responsible  solely  to  Admiral  Darlan. 

Great  Britain: 

The  newspapers  give  indications  that  the  formation  of  an  Allied 
Supreme  Council  is  under  consideration  composed  of  Britain,  the 
United  States,  Russia,  and  perhaps  also  China. 

Turkey: 

The  National  Assembly  passed  a  bill  pertaining  to  the  Turko- 
German  Trade  Agreement.   The  bill  stipulates  that  Turkey  will 
export  nothing  to  Germany  until  corresponding  imports  from  Ger- 
many and  countries  in  the  German  Customs  Union  have  arrived  on 
Turkish  soil. 

U.S.A.: 

Congress  is  drafting  a  law  giving  extraordinary  powers  to  the 
President.  This  law  also  is  to  make  it  compulsory  for  all  men 
between  the  ages  of  18  and  65  to  register  for  selective  service, 
while  all  men  between  19  and  45  will  be  called  to  active  duty  in 
the  Armed  Forces. 

Political  Review  No.  295?  Paragraph  4-d,  contains  the  message 
which  Roosevelt  sent  to  the  Armed  Forces  in  the  middle  of  Novem- 
ber. He  states  that  the  impending  war  against  Japan  will  prob- 
ably last  for  two  or  three  months,  while  the  ensuing  war  against 
Germany  and  Europe  can  last  for  ten  or  even  twenty  years.   The 
Communications  and  Intelligence  Division  of  the  Naval  Staff  ex- 
presses fully  justified  doubts  concerning  this  statement. 

Japan : 

A  comprehensive  report  by  the  German  Ambassador  to  Japan  concern- 
ing the  latest  events  in  Japan,  emphasizes  the  role  of  a  strongly 
pro-American  group  and  their  intrigues  in  which  persons  still 
occupying  important  government  positions  participated.  The  re- 
port closes  with(the  statement:   "Japanese  negotiation  tactics 
made  the  United  States  the  leader  of  the  A  B  C  D  Powers.   Japan 
recognized  that  any  further  procrastination  on  her  part  would 
be  tantamount  to  renouncing  her  position  as  a  great  power.   In 
view  of  these  considerations  the  Japanese  Armed  Forces  decided 
to  wage  war,  and  forced  the  issue."  Full  text  of  the  report  in 
Political  Review  No.  295*  Paragraph  6-a. 

China: 

The  Nanking  Government  transferred  control  of  the  Chinese  Mari- 

*  This  should  read  293,  Tr.N. 


-125- 


13  Dec.  1941  CONFIDENTIAL 

time  Customs  Administration  to  the  Japanese. 

This  marks  the  official  end  of  the  International 
Chinese  Maritime  Customs  Administration  which 
■was  established  in  I856.   It  was  one  of  the  most 
important  pillars  of  the  British  position  in  the 
Far  East. 


Special  Items: 

The  Fuehrer  Issued  a  new  directive  concerning  the  consumption  of 
metals.   It  provides  that  the  Chief,  Armed  Forces  High  Command 
should  allocate  the  nonferrous  metals  to  the  various  branches  of 
the  Armed  Forces  in  such  a  way  that  the  supply  will  not  run  out 
even  if  the  war  should  be  of  considerable  duration. 

See  War  Diary,  Part  B,  Vol.  V,  for  the  Fuehrer's  directive  and 
corresponding  directive  from  the  Naval  Ordnance  Division,  Eco- 
nomic Section.   Entry  is  made  as  per  Operations  Division,  Naval 
Staff,  1/Skl  5^770/geh. 


Situation  13  Dec.  1941 

I.   War  in  Foreign  Waters 

1 .   Enemy  Situation: 

North  Atlantic: 

British  naval  forces  captured  the  Frefach  steamer 
FORMIGNY  and  escorted  her  to  Gibraltar.  The  U.S.  Coast  Guard 
seized  the  French  liner  NORMANDIE  and  took  the  crews  off  all 
French  ships  lying  in  U.S.  harbors. 

South  Atlantic: 

According  to  an  Italian  report  three  destroyers  and 
two  monitors  of  the  TERROR  class  arrived  at  Punta  Delgada  on 
10  Dec.  The  U.S.  steamer  AMERICAN  PRESS  reported  an  air  atr- 
tack  off  Puerto  Rico  on  13  Dec.  and  stated  that  it  suspects 
that  a  U.S.  Army  plane  was  the  attacker.   The  Naval  Attache  at 
Rio  reports  that  oil  depots  at  Para  are  under  military  guard. 
U.S.  planes  arrived  in  Para  on  10  Dec. 

Pacific  Ocean: 

The  French  Admiralty  reports  that  new  agreements 
were  reached  between  French  and  Japanese  authorities  at  Hanoi 
concerning  the  defense  of  Indo-China  in  view  of  the  new  situa- 
tion.  The  agreements  emphasize  French  sovereignty  in  Indo- 


•  126-  9862 


1J>   Dec.  19^1  CONFIDENTIAL 

China.   Press  reports  state  that  eleven  U.S.  naval  vessels  have 
anchored  off  Callao.   U.S. -Mexican  military  agreements  provide 
for  reciprocal  free  passage  of  troops,  and  use  of  Mexican  air 
bases  by  U.S.  planes. 

The  Naval  Attache  at.  Rio  reports  that  the  petroleum  harbor  and 
dock  installations  in  Santos  have  been  occupied  by  the  Brazilian 
Army  since  12  Dec. 

2.   Ovn  Situation: 

In  view  of  the  military  occupation  of  Santos  harbor, 
the  Naval  Attache  at  Rio  asks  for  authorization  to  destroy  the 
engines  of  the  German  steamers  WINDHUK  and  MONTEVIDEO. 

The  Naval  Staff  thereupon  orders  that  the  ships  be  kept  from 
falling  into  enemy  hands  by  destroying  not  only  the  motors,  but 
as  completely  as  feasible  the  entire  ships  (see  Radiogram  2050). 

The  Commanding  Admiral,  Submarines  is  directed  to  send  the  Naval 
Staff  Officer  from  ship  "16",  who  is  homeward  bound  aboard  sub- 
marine U  "68",  to  the  Naval  Staff  for  his  report. 

Reports  about  the  enemy  situation  sent  out  by  Radiograms  193^ 
and  2224. 


II.   Situation  West  Area 

1.  Enemy  Situation; 

Air  reconnaissance  reported  sighting  a  convoy  of  fif- 
teen steamers  south  of  Milford,  but  no  course  was  given.  Radio 
monitoring  intercepted  directions  issued  from  Plymouth  to  a 
British  plane  stating  that  the  "object"  is  located  140  miles  north- 
west of  Cape  Vilano  and  a  report  to  another  plane  that  the  "object" 
was  hit  60  miles  off  Cape  Vilano.  Radio  intelligence  deciphered  a 
report  from  the  British  Assistant  Attache  at  Madrid  to  the  Intelli- 
gence Service  containing  a  perhaps  rather  useful  report  from  an 
alleged  agent  "Frutos  French"  who  just  arrived  from  Cherbourg: 

a.  The  arsenal  at  Cherbourg  is  so  badly  damaged  that  only  small 
jobs  can  be  handled  there.  As  a  result,  only  very  few  submarines 
use  that  harbor. 

b.  Reliable  sources  from  Brest  report  that  SCHARNHORST  and 
ONEISENAU  are  badly  damaged  and  unfit  for  action. 

c.  Work  on  the  PRINZ  EUGEN  is  continuing  day  and  night.  The 
ship  will  shortly  be  ready  for  action. 

2.  Own  Situation: 
Atlantic  Coast: 


-127-  9862 


13  Dec.  1941  CONFIDENTIAL 

Group  Command  West  orders  commencement  of  operations  for 
departure  of  ship  "10"  from  Flushing.   Enemy  air  activity  near 
Brest  at  1750.   It  was  observed  that  one  mine  was  laid.   One  enemy 
plane  was  shot  down. 

Channel  Coast: 

Nothing  to  report. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation: 

Lively  enemy  reconnaissance  activity  in  direction  of 
the  southern  Norwegian  coast  and  German  Bight  in  the  afternoon, 
diminishing  towards  evening.   Reports  about  sighting  three  Ger- 
man submarines  off  Ekeroewere  intercepted.  I 

Own  Situation: 

Enemy  air  raids  on  Flushing  and  Ijmuiden  in  the  after- 
noon.  No  damage  was  reported.  Bad  weather  interfered  with  the 
westbound  convoys  and  minesweeping  operations. 

2.  Norway: 

Enemy  Situation: 

Nothing  to  report. 

Own  Situation: 

The  8th  Destroyer  Flotilla  with  destroyers  Z  "23"  to 
"27"  and  the  TANGA  arrived  in  Kirkenes  in  the  afternoon  of  12 
Dec.   The  8th  PT  Flotilla  with  the  LUEDERITZ  anchored  at 
Loedingen  in  the  evening  of  13  Dec.   One  merchantman  and  the 
steamer  MILOS  ran  aground. 

The  Commanding  Admiral,  Norway  expresses  his  stand  on  the  sink- 
ing of  the  steamer  STEINBECK  by  submarine  U  "134"  (see  War  Diary 
12  Dec.)  in  Radiogram  1915*   The  message  contains  a  preliminary 
resume  of  the  neglects  and  grave  errors  which  led  to  the  tragic 
accident. 

Group  Command  North  sends  orders  by  Radiograms  1242  and  1451  to 
check  all  measures  that  have  been  taken  in  order  to  avoid  con- 
fusing our  own  vessels  with  those  of  the  enemy,  and  to  investi- 
gate the  organizational  setup  with  this  in  mind.  Radiogram  1310 
from  the  Commanding  Admiral,  Norway  reports  mine  danger  areas  in 
northern  Norway  between  Fugloe-Soroe  and  Vandoe-Fugloe. 


-128-  9862 


• 


13  Dec.  19^1  CONFIDENTIAL 

The  Uaval  Staff,  Hydrographic  and  Meteorological  Division  is 
charged  with  immediate  publication  of  these  danger  areas  by  radio 
and  press. 

Reports  so  far  received  by  the  Naval  Staff  do  not 
indicate  whether  or  not  the  mines  have  as  yet  been 
laid.   The  mine  barrage  is  intended  to  protect  that 
part  of  the  coastal  route  which  is  not  protected  by 
small  islands. 

Though  familiar  with  the  escort  vessel  situation,  Group  Command 
North  forwards  with  endorsement  the  request  from  Commanding  Ad- 
miral, Norway  for  allocation  of  another  patrol  and  reconnaissance 
flotilla  consisting  of  at  least  eight  vessels.   These  should  be 
equipped  with  88  mm.  cannons,  listening  devices,  and  be  capable 
of  at  least  8  knots.  At  present  the  number  of  escort  vessels  is 
so  small  that  convoys  cannot  be  escorted  to  the  extent  as  hereto- 
fore. Approximately  fifty  merchantmen  are  lying  in  the  Tromsoe 
area  at  this  time  and  this  number  increases  on  an  average  of 
eleven  ships  a  week.   The  eight  coastal  patrol  vessels  available 
cannot  escort  more  than  six  or  eight  of  these  merchantmen  to  and 
from  Kirkenes  each  week.  The  minesweeper  and  subchaser  flotillas 
are  so  urgently  needed  elsewhere  that  they  cannot  be  diverted  to 
escort  duty  (see  Radiogram  1240).   To  relieve  the  situation,  it 
is  planned  first  to  transfer  the  4th  Minesweeper  Flotilla,  pro- 
vided this  will  not  excessively  slow  up  the  minesweeping  opera- 
tions north  of  Dagoe.   Group  Command  North  is  afraid  that  this 
will  be  the  case  however,  because  the  pinnaces  can  be  used  for 
minesweeping  only  in  calm  seas,  since  the  spray  causes  excessive 
icing  of  the  small  craft.   (See  Radiogram  1236.) 

* 

Radiogram  1818  answers  the  inquiry  from  Group  Command  North  to 
the  effect  that  the  3rd  Torpedo  Boat  Flotilla  will  be  detailed 
to  convoy  escort  duty  in  the  territory  of  Group  Command  North 
and  the  Admiral,  Norway  as  soon  as  the  flotilla  is  ready  for 
action.  The  Naval  Staff  agrees  to  use  the  3rd  Torpedo  Boat 
Flotilla  for  mining  operations  in  the  Skagerrak  as  far  as  possi- 
ble. 


IV.  Skagerrak;  Baltic  Sea  Entrances;  Baltic  Sea; 
Nothing  to  report. 


V.   Submarine  Warfare 


1.   Enemy  Situation; 


Reconnaissance  by  the  Fleet  Commander,  Atlantic,  lo- 
cated several  merchantmen  in  the  mouth  of  the  Tejo.   A  U.S. 


-129- 


13  Dec.  1941  CONFIDENTIAL 

radio  station  reported  a  German  submarine  near  Fire  Island  Light- 
ship on  13  Dec. 

2.   Ovn  Situation; 

Submarine  U  "453"  sank  the  Spanish  tanker  BADALONA  in 
the  western  Mediterranean  and  U  "431"  torpedoed  an  enemy  tanker 
in  the  eastern  Mediterranean.   See  War  Diary,  Part  B,  Vol.  IV  for 
further  details.   The  German  Armistice  Commission,  France  noti- 
fied the  French  that  it  was  a  German  submarine  which  sank  the 
steamer  ST.  DENIS. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

An  aerial  torpedo  attack  by  the  4o6th  Bomber  Group 
sank  an  enemy  destroyer  south  of  Milford  in  the  night  of  12  Dec.  £ 

Normal  air  activities  by  our  Air  Force  during  the  day.  Four  en- 
emy planes  were  shot  down  by  our  pursuit  planes  and  six  by  anti- 
aircraft artillery.   In  the  evening  25  planes  flew  a  mine-laying 
mission  in  the  Huuber  estuary,  and  two  of  our  planes  attacked 
ships,  but  without  success.  No  enemy  air  raids  on  the  Reich 
region. 

2.  Mediterranean  Theater; 

Successful  air  action  in  the  battle  for  Libya  and  over 
Tobruk.  For  further  details  see  Daily  Situation. 

The  Chief  of  the  Japanese  Admiralty  Staff  told  the  Naval  Attache, 
Tokyo  that  he  hopes  that  attacks  on  the  Suez  Canal  will  increase 
now  that  British  ships  are  to  be  transferred  from  the  Mediterra- 
nean to  the  Pacific  and  in  view  of  the  situation  in  Russia.   The 
German  Naval  Staff  believes  it  is  important  to  mine  the  Suez 
Canal  in  order  to  show  proof  of  German- Japanese  cooperation.  The 
Armed  Forces  High  Command,  Operations  Staff  and  the  Commander  in 
Chief,  Air,  Operations  Staff  are  informed  of  this  opinion  by 
Radiogram  1551.  ( 

3.  Eastern  Front; 

Air  support  for  the  Army. 


VII.  Warfare  in  the  Mediterranean 
1.   Enemy  Situation; 

Western  Mediterranean; 

One  British  steamer  with  two  landing  craft  on  her  fore- 


-I3O-  9862 


% 


13  Dec.  19*U  CONFIDENTIAL 

deck  arrived  at  Gibraltar  on  12  Dec.  A  convoy  of  nine  vessels 
and  a  DIDO  class  cruiser,  probably  the  HERMIONE,  arrived  in  Gi- 
braltar on  13  Dec.  from  direction  unknown.   This  increases  the 
number  of  ships  in  that  harbor  to  66  merchantmen  and  12  tankers. 

Central  and  Eastern  Mediterranean: 

Italian  destroyers  sighted  three  British  destroyers  off 
Cape  Bon  at  0300.   The  Italian  convoy  including  the  DEL  GRECO  and 
FILZI  was  sighted  and  reported  on  12  Dec.  by  British  air  recon- 
naissance in  the  latitude  of  Cape  Spartivento  on  northerly  course. 
Radio  station  Malta  was  heard  relaying  the  message.   British  sur- 
face forces  were  located  in  the  morning  of  13  Dec.  on  easterly 
course  20  miles  north  of  Malta.  Air  reconnaissance  located  several 
steamers  in  the  eastern  Mediterranean  near  the  Marmarica  coast  and 
off  Alexandria.  According  to  radio  monitoring  reports  at  least 
three  cruisers  and  two  groups  of  destroyers  were  operating  in  that 
area.  The  British  battleships  most  likely  were  also  at  sea  in  the 
afternoon.   Radio  monitoring  reports  that  the  British  steamer 
MYRIEL  (3,560  BRT)  was  torpedoed  between  Alexandria  and  Tobruk. 
After  this,  another  steamer  returned  to  Alexandria  under  pursuit 
cover. 

2 .  Own  Situation : 

The  3rd  PT  Flotilla  arrived  in  Augusta  at  0615.  No 
reports  of  success. 

3.  Situation  Italy: 

Larger  parts  of  the  Italian  fleet  left  in  the  after- 
noon of  13  Dec.  to  carry  out  convoy  escort  duty  as  planned. 

The  Italian  cruisers  BARBIANO  and  GIDSSANO  en  route  from  Palermo 
to  Tripoli  with  700  tons  of  food  stuffs  and  ammunition  aboard  were 
set  afire  by  British  destroyers  at  about  0400.   Supermarina  re- 
ports that  the  cruisers  must  be  considered  a  total  loss.  Accord- 
ing to  Reuter  the  attack  was  carried  out  by  three  British  and  one 
Dutch  destroyers,  which  are  also  said  to  have  sunk  one  torpedo 
boat  and  one  PT  boat.   No  military  damage  was  caused  by  enemy  air 
raids  on  Augusta,  Patras,  and  Cotrone. 

4.  Transport  of  Supplies  to  North  Africa: 

The  steamers  DEL  GRECO  and  FILZI,  loaded  with  supplies 
for  North  Africa,  were  sunk  by  an  enemy  submarine  south  of  Taran- 
to.   The  supply  ships  from  Italy  did  not  arrive  in  North  African 
ports.  Three  transport  submarines  and  one  torpedo  boat  are  ex- 
pected to  arrive  In  Bardia.   In  view  of  the  enemy  situation  it 
is  feared  that  the  two  naval  transport  squadrons  52  and  53  can- 
not be  sent  across  as  planned. 

5.  Area  Naval  Group  South: 
Aegean  Sea: 


-131-  9862 


13  Dec.  19^1  CONFIDENTIAL 


Enemy  Situation: 

Italian  agents  report  that  three  Russian  tankers,  which 
are  at  present  lying  in  the  Bosporus,  are  about  to  sail  into  the 
Aegean  Sea. 

Own  Situation: 

Shuttle  steamer  "P  III"  was  sunk  by  an  enemy  submarine 
by  gunfire  on  her  trip  from  Suda  to  Iraklion  (Candia).   Three 
motor  sailships  left  for  Bardia  loaded  with  supplies. 

Black  Sea: 

Enemy  Situation: 

Nothing  to  report. 

Own  Situation: 

The  submarine  DELFINUL  cancelled  her  mission  and  re- 
turned to  port.   Transport  of  supplies  to  the  Ukraine  was  post- 
poned to  16  or  17  Dec.  According  to  the  Rumanian  Naval  Mission, 
the  Rumanian  Naval  Staff  believes  that  it  is  both  undesirable 
and  unnecessary  to  reduce  the  number  of  German  Army  and  Navy 
personnel  assigned  to  coastal  defense  in  order  to  cut  down  the 
need  for  Rumanian  currency.   The  Rumanian  Chief  of  Staff  was  not 
thinking  of  front  line  troops  when  he  made  his  request  for  a  re- 
duction of  German  troops  in  Rumania.  For  reasons  pertaining  to 
personnel  and  training  it  is  impossible  for  Rumania  to  take  over 
German  Army  and  Navy  coastal  batteries  anytime  soon.   There  are 
no  objections  to  the  withdrawal  of  the  German  688th  Reserve  Bat- 
talion.  (See  Radiogram  1200.) 

In  view  of  the  fact  that  the  situation  at  the  Southern  Army  Group 
has  changed  and  there  is  a  new  commanding  officer,  the  Naval 
Staff  urges  a  personal  conference  between  the  Army  and  Navy  Group 
Commands,  South.   This  Is  desirable  in  order  to  clarify  to  what 
extent  the  Navy  can  assist  the  Army,  and  to  synchronize  future 
operations. 

6.   Situation  France: 

See  War  Diary,  Part  C,  Vol.  XVI,  for  the  French  Dele- 
gation's report  of  location  of  French  Naval  Units  on  1  Dec. 
19^1  as  given  to  the  German  Armistice  Commission,  France. 


VIII.  Situation  East  Asia 

1.   Enemy  Situation: 

U.S.  Admiral  Hart  reports  that  a  battle  between  the 
U.S.  Asiatic  Squadron  and  Japanese  naval  forces  ended  at  sun- 


•132- 


13  Dec.  1941  CONFIDENTIAL 

down  when  the  Japanese  withdrew.   The  U.S.  Navy  Department  reports 
that  the  Japanese  occupation  of  Guam  was  not  yet  confirmed  in 
Washington  at  noon  12  Dec.  A  British  report  states  that  the 
OKLAHOMA  capsized  and  the  TENNESSEE  was  set  afire  during  the  air 
raid  on  Pearl  Harbor.   One  destroyer  exploded  and  a  minelayer 
was  set  afire.  An  Italian  report  states  that  one  destroyer,  one 
submarine,  and  another  vessel  were  damaged  by  a  Japanese  bomber 
attack  on  Cavite,  and  that  one  U.S.  merchant  ship  was  sunk  by 
Japanese  submarine  attack.  Domei  reports  that  the  cruiser  EDIN- 
BURGH became  the  flag  ship  of  the  British  Far  East  forces. 

2.   Situation  Japan: 

The  Japanese  Navy  reports  that  the  ARIZONA  was  also 
sunk  in  the  naval  battle  of  Hawaii.  According  to  the  Japanese 
Naval  Attache  at  Berlin,  the  Japanese  Navy  knows  nothing  about 
the  sinking  of  another  British  battleship  in  the  battle  of  Malaya. 


IX.  Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

An  enemy  attack  on  the  northern  flank  of  the  1st 
Armored  Army  collapsed  in  our  defensive  fire.  The  center  of  the 
enemy  attacks  on  the  17th  Army  was  directed  at  the  sector  south 
of  Popasnaya.   The  enemy  succeeded  in  penetrating  our  lines  there 
and  we  withdrew..  A  further  enemy  breakthrough  is  to  be  prevented 
by  bringing  up  all  reserves  within  reach. 

Central  Army  Group: 

The  enemy  followed  and  harrassed  the  withdrawing  parts 
of  the  Army  Group  and  apparently  mustered  all  available  strength 
in  order  to  widen  the  breakthrough  at  Livny.  According  to  prison- 
ers of  war,  the  enemy  intends  to  let  the  group  which  broke 
through  our  lines  roll  up  our  front  to  the  north  and  advance  up 
to  the  Yefremov  area.   On  the  2nd  Army  sector  the  45th  and  143rd 
Infantry  Divisions  have  orders  to  get  through  the  enemy  lines  in 
a  western  direction.  The  newly  brought  up  56th  Infantry  Division 
engaged  the  enemy  spearheads  in  order  to  relieve  the  situation. 
Withdrawal  of  the  divisions  of  the  XXXV  Army  Corps  proceeding  ac- 
cording to  plan  and  without  much  interference.  The  enemy  contin- 
ued his  attacks  on  the  2nd  Armored  Army  and  the  4th  Army.  The 
withdrawal  of  the  V  Army  Corps  Is  hampered  by  lack  of  fuel.  The 
situation  is  critical.  Less  activity  on  the  9th  Army  sector. 

Northern  Army  Group: 

New  enemy  forces  are  under  way  along  the  line  Vologda- 
Tikhvin.  Enemy  pressure  on  the  1 6th  Army  continues.  The  enemy 


-133- 


9862 


1?  Dec.  1941  CONFIDENTIAL 

succeeded  in  penetrating  our  lines  on  a  divisional  sector  of  the 
15th  Army  but  was  pushed  back  by  means  of  a  counterattack. 

2.  Finnish  and  Norwegian  Front: 

The  Karelian  Army's  operations  at  Povyenets  are  success- 
ful.  Otherwise  the  situation  is  unchanged. 

3.  North  Africa: 

Our  defense  of  the  Bardia-Cirene-Halfaya  area  continues 
Enemy  attacks  on  the  El  Gazala  position  were  repulsed.   German 
casualties  from  19  Nov.  to  2  Dec:   198  officers,  4,522  non-com- 
missioned officers  and  men.   Of  these,  52  officers  and  550  non- 
commissioned officers  and  men  were  killed. 


»**♦*»**#*♦»♦*»♦##***♦»*♦ 


-134-  9862 


CONFIDENTIAL 

14  Dec.  19^1 

Items  of  Political  Importance 

France: 

The  French  Government  Informed  the  U.S.,  Britain  and  Japan  that 
France  will  remain  neutral  in  the  East  Asia  conflict.   The  al- 
leged general  mobilization  in  French  Indo-China  is  denied.   It 
is  rumored  that  the  French  Government  is  willing  to  break  off 
diplomatic  relations  with  the  U.S.,  should  Germany  desire  such 
action. 

Establishment  of  an  Italian  mission  at  Vichy  was  agreed  upon 
during  the  Darlan-Ciano  meeting.  French  shipments  of  raw  mater- 
ials to  Italy  are  also  said  to  have  been  discussed.  The  Italians 
have  consented  to  free  French  prisoners  of  war  (about  200). 

The  German  Government  has  been  informed  by  the  French  Government 
that  the  latter  is  considering  conferring  with  the  British  Govern- 
ment about  letting  Britain  use  the  Jibuti  harbors  and  railroad  in 
return  for  lifting  the  blockade  on  French  Somaliland.   Only  lim- 
ited British  transit  under  Red  Cross  supervision  is  said  to  be 
under  consideration. 

Great  Britain: 

The  press  reports  that  the  Allies  are  preparing  a  joint  declara- 
tion against  the  signing  of  separate  peace  treaties  with  the 
Axis  Powers.   This  declaration  is  to  be  made  public  after  the 
Russian  declaration  of  war  on  Japan,  which  may  be  expected  sooner 
or  later.  Furthermore,  a  new  Allied  program  for  allocation  of 
war  materiel  is  to  be  worked  out. 

Eire: 

On  the  occasion  of  the  United  States'  entry  into  the  war,  De 
Valera  declared  that  Eire  will  be  benevolently  neutral .  The 
large  number  of  American  citizens  of  Irish  descent  explains 
this  slight  change  in  Eire's  attitude. 

U.S.S.R. : 

Litvinov  stated  in  Washington  that  Japan  is  the  common  enemy  of 
all  the  Allies.   The  Russian  spring  offensive  has  already  begun. 
While  Britain  has  never  been  asked  to  launch  a  premature  mili- 
tary offensive,  it  would  be  appreciated  if  Allied  troops  were 
put  into  action  on  Russian  soil.  The  new  situation  in  the  Pacific 
would  at  worst  only  make  it  impossible  to  use  Vladivostok  as  a 
port  of  entry  for  Allied  shipments.  While  the  Russian  press  and 
radio  remained  neutral  in  the  American- Japanese  conflict  up  to 
12  Dec,  the  newspaper  Pravda  since  that  date  has  begun  to  attack 
Japan  quite  openly. 


-155- 


14  Dec.  1941  CONFIDENTIAL 

U.S.A. : 

The  U.S.  State  Department  announces  that  the  Swedish  liner  KUNGS- 
HOLM  (20,000  BRT)  has  been  seized  by  the  U.S.  Government.   The 
reason  given  for  this  action  is  that  the  ship  cannot  continue  to 
sail,  and  under  those  circumstances  dock  fees  would  become  unneces- 
sarily high. 

Japan : 

The  Dutch  Government  in  Exile  has  now  forwarded  a  declaration  of 
war  to  Japan. 


Special  Items ; 

I.  In  view  of  the  developments  in  the  Pacific  which  came  as  a 
surprise  to  the  Anglo-Saxon  powers,  it  seems  highly  possible  that 
the  U.S.  Government  will  consider  it  necessary  to  extend  its 
strategic  influence  to  the  Azores,  Cape  Verde  and  French  West 
Africa,  the  direction  of  least  resistance,  in  order  to  gain  quick 
results.   This  again  increases  the  need  for  Franco-German  collabo- 
ration. For  the  information  of  the  Armed  Forces  High  Command  the 
Naval  Staff  therefore  sends  the  Naval  Liaison  Officer  at  the  Armed 
Forces  High  Command  a  detailed  statement  concerning  the  necessity 
and  possibilities  of  France's  defense  of  her  African  Colonies" 
against  Britain  and  the  U.S..   See  War  Diary,  Part  Q,  Vol.  XVI  for 
a  copy  of  the  text. 

II.  The  Swedish  Naval  Attache  at  Berlin  forwarded  figures  on  the 
transportation  of  Germans  on  furlough  from  Norway  to  Germany  and 
back  via  the  Swedish  railroads,  arid  other  Swedish  services  for 
Germany  and  Finland.   These  figures  show  that  between  July  1940 
and  1  Nov.  1941,  on  the  average  about  1,400  members  of  the  German 
Armed  Forces  per  day  were  transported  to  Norway  via  Sweden,  as 
well  as  1,000  to  1,500  loaded  freight  cars  per  month.   Approxi- 
mately 75,000  tons  of  German  Armed  Forces'  materiel  was  transported 
to  Haparanda  via  Sweden  during  this  time.   More  than  70  German 
ships  of  approximately  420,000  BRT  were  convoyed  through  Swedish 
territorial  waters  by  Swedish  air  and  naval  forces  since  22  June 
194l  without  accidents.   The  German-Swedish  trade  exchange  rose 

in  proportion  with  the  increase  in  the  clearing  sum  from  800,000,000 
In  1938  to  1,800,000,000  Swedish  crowns  in  1941.   Swedish  ships 
have  had  to  transport  the  bulk  of  these  goods.   The  Swedes  insti- 
tuted measures  to  improve  the  ore  shipping  facilities  from  Narvik 
and  Lulea  so  that  the  daily  export  via  Lulea  sometimes  rose  as 
high  as  45,000  tons.   Sweden  delivered  to  Finland  approximately 
50,000  tons  of  foodstuffs  and  13,500,000  crowns  worth  of  war  ma- 
teriel and  granted  credits  of  about  300,000,000  crowns. 

Britain  no  doubt  has  been  informed  about  the  vol- 
ume of  these  supply  movements  just  as  well  as  we. 
However,  it  must  be  admitted  that  these  not  in- 
considerable Swedish  accomplishments  from  the  point 


-156- 


14  Dec.  1941  CONFIDENTIAL 

of  view  of  our  warfare  fully  justify  our  consenting 
to  the  continuation  of  the  so-called  Goeteborg 
traffic  (Swedish  ships  sailing  to  South  America, 
Tr . N . ) . 


Situation  14  Dec.  1941 

I.   War  in  Foreign  Waters 

1 .  Enemy  Situation; 

North  Atlantic : 

The  RAMILLIES  and  the  destroyers  DOUGLAS  and  BROKE  are 
at  sea  near  Iceland.  According  to  Spanish  reports  a  convoy  con- 
sisting of  approximately  J>0   ships  left  Gibraltar  in  the  afternoon 
in  westerly  direction.  UNICORN  is  among  the  escort  vessels. 

South  Atlantic : 

The  German  Naval  Attache  at  Tokyo  reports  that  Trinidad 
is  the  meeting  place  for  convoys  in  the  West  Indies.   The  tankers 
and  bauxite  transport  ships  assemble  there.   The  harbor  of  Port 
of  Spain  is  protected  by  air  and  naval  forces.   Between  20  and  50 
ships  are  in  the  harbor  daily.   German  nationals  have  been  in- 
terned on  the  leper  island  of  Chacachacare  until  they  can  be 
transported  to  Canada. 

Pacific  Ocean: 

A  directive  from  Cavite  orders  all  U.S.  ships  bound 
for  Manila  to  go  to  Borneo,  Java  or  Australia  until  further  notice 
The  Clearwater  radio  station  directs  all  merchant  ships  in  the  Pa- 
cific to  by-pass  Oahu  island  at  night  by  at  least  45  miles,  and 
issues  a  submarine  warning  for  the  waters  between  Hawaii  and  the 
West  Coast. 

2.  Own  Situation; 

The  blockade  runner  KULMERLAND  was  located  by  Japanese 
naval  forces  on  12  Dec.  near  the  Bonin  Islands. 

Reports  on  the  enemy  situation  by  Radiogram  l6l6. 

On  12  Dec.  the  Naval  Staff  gave  Group  Command  West  permission 
for  BENNO  to  sail. 


II.   Situation  West  Area 


-137- 


14  Dec.  194l  CONFIDENTIAL 

1.  Enemy  Situation; 
Nothing  to  report. 

2.  Own  Situation: 

Atlantic  Coast: 

The  commanding  officer  of  M  "4403"  was  wounded  on  13 
Dec.  during  an  enemy  air  raid  on  our  ore  transports  from  Bilbao. 
The  Gironde  has  been  closed  to  shipping  because  air-laid  mines 
are  suspected  there. 

Channel  Coast: 

The  first  day  of  the  transfer  of  ship  "10"  went  off 
according  to  plan.  Departure  from  the  intermediate  port  Cher- 
bourg was  postponed  for  twenty  four  hours. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation: 

Convoy  FS  71  anchored  off  the  Thames  and  is  scheduled 
for  arrival  on  15  Dec.  A  small  British  merchantman  sank  on  8 
Dec.  off  Cromer  after  hitting  a  mine. 

Own  Situation: 

Nothing  special  to  report. 

Group  Command  North  reported  on  10  Dec.  that  the  commander  of 
pursuit  planes  for  the  Holland-Ruhr  region  will  no  longer  be  able 
to  continue  to  furnish  the  requested  air  escorts  for  the  Navy  be- 
ginning 10  Dec,  since  a  considerable  number  of  his  planes  have 
been  transferred.   Alarm  starts  are  only  possible  in  the  area  from 
The  Hague  to  Helder  and  then  only  in  the  most  urgent  instances. 
However,  Group  Command  North  cannot  do  without  pursuit  cover. 

A  corresponding  request  from  the  Naval  Staff  is  sent  to  the  Com- 
mander in  Chief,  Air. 

2.  Norway: 

Enemy  Situation: 

Air  reconnaissance  reports  that  two  ships  of  approxi- 
mately 4,000  BRT  each  are  lying  in  Kern  harbor.   The  harbor  and 
the  Gulf  of  Kandalaksha  are  frozen  over.  A  navigational  channel 
in  the  ice  can  be  seen.   The  presence  of  a  submarine  in  the 
Varanger  Fjord  leads  us  to  suspect  mine-laying  operations  there. 


-I38-  9862 


# 


14  Dec.    19^1  CONFIDENTIAL 

From  monitoring  radio  telephone  conversations  it  was  learned  that 
the  point  of  rendezvous  for  British  and  Russian  submarines  is  15 
miles  north  of  Nordkyn. 

Own  Situation; 

The  8th  Destroyer  Flotilla  reports  that  mines  were  de- 
livered at  Kirkenes.  The  3rd  Minesweeper  Flotilla  was  given  the 
task  of  sweeping  the  entrance  to  the  Varanger  Fjord.  The  Norwe- 
gian coastal  steamer  TOPAS  (142  BRT)  was  sunk  by  enemy  bombing 
northwest  of  Haugesund. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 

The  Finnish  flag  was  hoisted  over  Hogland. 

The  fire  aboard  the  floating  naval  quarters  of  the  25th  Submarine 
Flotilla  LOFJORD  in  Neufahrwasser,  reportedly  caused  by  negli- 
gence, has  not  been  extinguished  so  far  in  spite  of  the  fact  that 
all  available  extinguishing  devices  were  used.  The  ship  is  there- 
fore burning  out.  There  are  28  dead  (among  them  two  submarine 
commanders,  one  chief  engineer  and  five  gunnery  and  mining  offi- 
cers) or  missing,  and  eleven  badly  wounded  (see  Radiogram  1500). 

These  fires  aboard  floating  quarters  must  be  pre- 
vented at  all  cost.  The  watch  and  security  service 
must  be  intensified.   The  Naval  Staff,  Quartermas- 
ter Division  and  the  Naval  Staff,  Submarine  Section 
will  take  further  measures. 


V.   Submarine  Warfare 

1.  Enemy  Situation; 

A  surfaced  submarine  attacked  the  British  tanker 
CONFIDENCE  (8,494  BRT)  about  300  miles  west  of  Rockall.   It 
cannot  have  been  one  of  our  submarines.  Air  patrols  reported 
sighting  several  submarines  in  the  Gibraltar  area.  The  convoy 
leaving  Gibraltar,  probably  HG  77,  consists  of  32  vessels, 
which  are  escorted  by  UNICORN,  10  corvettes,  5  gunboats  and  3 
destroyers.  This  constitutes  a  remarkably  strong  escort. 

2.  Own  Situation; 

See  War  Diary,  Part  B,  Vol.  IV  for  reports  on  submarine 
operations  and  successes  in  the  Atlantic  and  Mediterranean,  es- 
pecially about  the  sinking  of  a  British  cruiser  off  Alexandria 
by  submarine  U  "557".  See  War  Diary,  Part  C,  Vol.  IV  for  obser- 
vations by  the  Commanding  Admiral  of  Submarines  on  the  submarine 


\ 

9662 


-139- 


14  Dec.  1941  CONFIDENTIAL 

situation  of  11  Dec.  Entry  made  as  per  Operations  Division,  Na- 
val Staff,  l/Skl  op.  2112/41,  Gkdos.  Chefs. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 
Nothing  to  report. 

2.  Mediterranean  Theater: 

Fifteen  Ju  88' s  attacked  a  British  naval  force  consist- 
ing of  one  battleship,  two  cruisers  and  nine  destroyers  "but  un- 
fortunately without  success.   See  Enemy  Situation,  Mediterranean 
for  further  reconnaissance  reports. 

3.  Eastern  Front: 

Normal  air  support  of  the  Army  concentrating  on  rail 
communications . 

4.  Organization: 

The  Fleet  Command  asks  approval  of  its  request  to 
transfer  Squadron  1/196  from  Stavanger  Sola  back  to  the  Western 
Area.   The  squadron  was  transferred  under  option  of  recall  to  the 
Air  Force  Commander,  North,  where  it  is  at  present,  and  it  is 
planned  to  use  it  on  shipboard  from  the  middle  of  January  on. 
(See  Radiogram  0830.)   The  Naval  Staff  sends  a  corresponding  re- 
quest to  the  Air  Forces  High  Command,  Fleet  Staff. 


VII.  Warfare  in  the  Mediterranean 

1 .   Enemy  Situation: 

Western  Mediterranean: 

Nothing  to  report. 

Central  and  Eastern  Mediterranean: 

Italian  reconnaissance  reports  that  an  enemy  transport 
landed  troops  northwest  of  Ras  Azzaz,  i.e.  east  of  our  own  posi- 
tions.  Italian  radio  monitoring  states  that  British  battleships 
and  the  Malta  Group  probably  were  at  sea  on  13  Dec.   A  strong 
enemy  naval  force  was  located  by  aerial  reconnaissance  in  the  sea 
area  north  of  Ras  Azzaz  and  was  tracked  continuously.   This  enemy 
force  presumably  was  for  the  protection  of  the  landing  operation. 
Reports  as  to  the  strength  of  the  force  varied,  ranging  from  one 
to  three  battleships  or  two  to  three  cruisers  with  a  correspond- 


-140-  'a62 


# 


14  Dec.  19^1  CONFIDENTIAL 

ing  number  of  destroyers.  They  were  reported  on  northwesterly 
course  until  1300  and  from  then  on  southeasterly.  Besides  this 
strong  naval  force,  another  naval  force  consisting  of  one  cruiser, 
three  destroyers  and  two  submarine  chasers  was  sighted  off  Marsa 
Matruh.  As  far  as  could  be  observed  under  poor  visibility  con- 
ditions one  cruiser,  three  destroyers  and  several  steamers  were 
lying  in  Malta  in  the  morning. 

2.   Own  Situation: 

The  arrival  of  the  3rd  PT  Flotilla  in  Augusta  on  13 
Dec,  reported  by  the  German  Naval  Command,  Italy,  was  obviously 
an  error,  since  the  night  of  13  Dee.  the  same  Command  ordered  the 
flotilla  to  turn  back  if  no  target  was  found  by  0300,  and  there- 
after a  report  of  arrival  was  made  on  14  Dec,  0930.  The  flotilla 
sighted  nothing. 

,   3.   Situation  Italy; 

Nothing  to  report. 

4 .  Transport  of  Supplies  to  North  Africa : 

No  ships  with  supplies  from  Greece  or  Italy  arrived  in 
North  African  ports  on  14  Dec.   The  torpedo  boat  and  the  three 
transport  submarines  also  did  not  reach  their  ports  of  destina- 
tion on  that  day.  The  scheduled  large  supply  convoys  were  divided 
into  three  sections  which  left  according  to  plan  on  13  Dec.  and 
14  Dec.  under  strong  air  and  naval  protection.  Convoy  No.  3  con-" 
sisted  of  the  steamers  DEL  GRECO  and  FILZI,  the  sinking  of  which 
was  reported  off  Taranto  on  13  Dec.  (see  War  Diary  13  Dec). 
Convoy3Nos.  1  and  2  (No.  1:   Steamers  PISAM,  MONGINEVRO,  NAPOLI. 
No.  2:  Steamers  ANKARA,  and  CAPO  D'  ORSO)  returned  to  port  on  14 
Dec.  in  view  of  the  enemy  situation.  The  escort  and  security 
forces  evidently  turned  back  too.  No  accurate  reports  are  avail- 
able so  far.  See  War 'Diary,  Part  C,  Vol.  XIII  for  the  report 
from  the  German  Naval  Command,  Italy  concerning  the  plan  for  exe- 
cution of  the  mission.  Entry  made  as  per  Operations  Division, 
Naval  Staff,  l/Skl  op.  2117/41  Gkdos.  Chefs. 

5.  Area  Naval  Group  South: 
Aegean  Sea: 

Enemy  Situation: 

Nothing  to  report. 

Own  Situation: 

A  submarine  unsuccessfully  attacked  the  net  layer 
PANIGAGLIA  and  her  escort  on  their  way  to  Suda.  We  may  presume 
that  the  attacker  was  damaged  or  even  sunk  by  the  depth  charges 
released. 

Black  Sea: 


-141-  9862 


14  Dec.  19^1  -  CONFIDENTIAL 

Enemy  Situation: 

The  German  Naval  Attache  at  Istanbul  reports  that  the 
Russians  will  deliver  a  total  of  80,000  tons  of  fuel  to  the  Turks. 
The  tankers  which  are  scheduled  to  return  to  Batum  to  haul  further 
loads  were  still  lying  off  Istanbul  on  13  Dec.   Only  one  single 
Russian  tugboat  with  two  tankers  has  so  far  been  sighted  between 
Trebizond  and  Batum. 

In  view  of  this  situation,  Group  Command  South  deems  it  unneces- 
sary to  assign  additional  submarines  in  order  to  prevent  Russian 
tankers  from  leaving  through  the  Dardanelles  In  southerly  direc- 
tion. 

The  XLIV  Army  Corps  reports  that  four  large  transport  vessels  were 
sighted  leaving  Sevastopol  in  the  morning. 

Own  Situation; 

The  steamer  CARPATI  is  no  longer  icebound  and  has  de- 
parted for  Nikolayev  with  the  steamer  TISSA.  Otherwise  nothing 
to  report. 

6.   Situation  France: 

The  destroyer  VAUQUELIN  and  the  submarines  ARGONAUTE 
and  DIANE  left  for  Oran  on  13  Dec.   Thus  all  the  reinforcements 
granted  are  under  way. 


VIII.  Situation  East  Asia: 

Nothing  to  add  to  the  reports  appearing  in  the  press. 


IX..  Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

No  change  In  the  Crimean  situation.   Only  little  activ- 
ity on  the  sector  of  the  1st  Armored  Army  in  view  of  bad  road 
conditions.   The  force  of  the  enemy  attacks  also  diminished  in 
the  17th  Army  Sector.   The  enemy  penetration  at  Popasnaya  was  re- 
paired and  heavy  losses  were  inflicted  on  the  enemy. 

Central  Army  Group: 

The  situation  on  the  sector  of  the  45th  Infantry  Di- 
vision is  not  yet  clear.  Withdrawal  of  the  positions  west  of 
Yefremov  as  well  as  along  the  line  Volovo-Dyedilovo  proceeded 


-142- 


14  Dec.  19^1  CONFIDENTIAL 

according  to  plan.   Isolated  attacks  on  further  divisions  of  the 
2nd  Army  were  repulsed.  Some  enemy  attacks  on  the  4th  Army  sec- 
tor, mainly  on  the  divisions  of  the  3rd  and  4th  Armored  Group 
west  of  Kursk  were  repulsed  and  others  are  still  in  progress. 
Kalinin  which  was  heavily  attacked  by  enemy  air  forces,  is 
scheduled  for  evacuation  during  the  night  of  14  Dec. 

Northern  Army  Group: 

Enemy  attacks  south  of  Lake  Ilmen  on  both  sides  of 
Volkhov  and  an  advance  from  Leningrad  were  repulsed. 

2.   Finnish  and  Norwegian  Front; 

The  II  Finnish  Army  Corps  and  the  1st  Jaeger  Brigade  . 
succeeded  in  establishing  a  bridgehead  across  the  White  Sea  Canal 
at  Povyenets.  The  railroad  Maselskaya-Velikaya  Guba  was  crossed. 

5.   North  Africa: 

The  enemy  achieved  only  small  territorial  gains  in  an 
attack  on  the  Gazala  position.  Our  reconnaissance  located  a  con- 
centration of  about  2,000  to  3,000  combat  vehicles,  among  them 
tanks,  in  the  area  south  of  Sidi  Barani.  These  are  no  doubt  rein- 
forcements newly  brought  up  from  the  Middle  East. 


**♦**#*♦*************#»#* 


-14> 


9862 


CONFIDENTIAL,. 

15  Dec.  19*U 

Items  of  Political  Importance 

Vatican; 

Authoritative  Vatican  circles  frankly  criticize  Roosevelt's  at- 
titude, holding  it  responsible  for  the  spreading  of  the  var. 

* 

U.S.S.R. : 

United  Press  reports  that  conferences  are  under  way  in  London  at 
which  an  Anglo-Russian  agreement  is  being  discussed.   The  agree- 
ment is  to  include  a  full  military  alliance,  transfer  of  British 
naval  forces  to  a  sector  of  the  Soviet  Union,  and  opening  of  a 
second  European  front. 

Turkey; 

A  report  from  the  German  Ambassador  states  that  Japan1 s  entry 
into  the  war  and  her  astonishing  initial  successes  have  caused 
grave  concern  in  influential  Turkish  circles.   In  Foreign  Ministry 
circles  the  German  situation  Is  regarded  as  considerably  improved. 

U.S.A.; 

While  the  American  people  were  not  quite  ready  for  a  European  war, 
Roosevelt  may  count  on  their  solid  support  in  the  war  against 
Japan.   The  character  of  the  Japanese  surprise  attack  will  no 
doubt  cause  a  strong  flare-up  of  national  consciousness  and  thus 
make  any  propaganda  on  the  part  of  the  U.S.  Government  superfluous. 
The  war  against  Japan  means  a  concentration  of  all  energy  on  the 
armament  of  the  U.S.  Armed  Forces  themselves,  with  consequent  limi- 
tation of  the  aid  extended  to  foreign  countries;   a  transfer  of  main 
U.S.  activity  from  the  Atlantic  to  the  Pacific  in  so  far  as  U.S. 
commitments  on  Iceland  permit;   institution  of  convoys  in  the  Pa- 
cific;  the  closing  of  Vladivostok.   It  also  jeopardizes  certain 
raw  material  imports.   The  heavy  losses  suffered  by  the  Anglo-Saxon 
fleet  have  caused  great  consternation  in  the  Government  and  Con- 
gress.  The  press  points  out  the  discrepancy  between  the  pitiful 
state  of  affairs  and  the  braggadocio  that  preceded  it.   There  is 
considerable  anxiety  in  the  Eastern  States  (?  Tr.N.),  caused  by 
fear  of  Japanese  air  raids. 

Argentina;  J$o] 

According  to  diplomatic  reports  the  problem  of  fortifying  the 
Straits  of  Magellan  is  to  be  considered  without  haste.  ^-Fortifi- 
cation would  be  in  violation  of  treaties  concluded  in  l^|8l,  which 
neutralized  the  Straits  for  all  time  to  come  and  assured  free 
passage  for  all  ships.   The  question  of  the  old  treaty  was  prob- 
ably raised  for  the  sole  purpose  of  gaining  some  concessions  from 
the  United  States. 


-144- 


♦t 


15  Dec.  1941  coufidp:ntial 

South  America: 

Brazilian  diplomatic  circles  are  of  the  opinion  that  the  Latin 
American  countries  will  experience  a  letup  in  U.S.  pressure  as 
a  result  of  the  American- Japanese  war,  and  that  this  will  be 
beneficial.  The  coming  conference  at  Rio  de  Janeiro  will  hard- 
ly result  in  more  than  a  platonic  declaration  of  sympathy  for  Pan 
American  interests  and  be  of  little  practical  value  to  the  U.S.. 
Recently  it  has  been  established  that  Uruguay  declared  war  neither 
on  Japan  nor  Germany.   However,  since  Cuba  and  Guateiiala  declared 
war,  all  the  small  Central  American  states  are  to  be  regarded  as 
hostile. 

China: 

The  Japanese-inspired  Chinese  press  in  Shanghai  has  already 
launched  an  attack  on  the  white  race.  German  nationals  in  Chung- 
king China  will  not  be  interned. 

Japan : 

The  official  title  of  the  present  conflict  is:   "The  War  of  Great- 
er East  Asia". 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

I.   After  close  observation  of  the  Mediterranean  situation  it 
is  impossible  not  to  be  concerned  about  the  possibility  of  enemy 
action  against  Crete.   Developments  must  be  followed  carefully 
in  order  to  permit  timely  intervention  by  submarines,  should 
conditions  warrant  it. 

"II.   The  Chief,  Naval  Staff,  Quartermaster  Division  reports  on 
the  production  of  engines  for  PT  boats.   If  it  proceeds  accord- 
ing to  plan  there  will  be  a  50$  reserve  in  PT  boat  engines  by 
this  coming  summer.  An  additional  report  is  made  on  the  procure- 
ment of  iron  for  the  construction  of  transport  vessels.   It  be- 
comes unnecessary  to  send  Staatsrat  Blohm  on  his  mission  since 
at  his  suggestion  the  Deutsche  Werft  has  been  commissioned  to 
construct  the  1,200  ton  vessels  also  in  foreign  shipyards,  and 
the  Minister  of  Transportation  has  done  everything  possible  to 
launch  the  building  program  of  new  merchant  vessels.   The  num- 
ber of  ships  built  will  depend  exclusively  on  whether  the  iron 
quota  which  the  Fuehrer  granted  to  the  Chief,  Naval  Staff  on 
12  Dec.  will  actually  be  allocated. 

III.  On  the  basis  of  the  minutes,  the  Chief,  Naval  Staff  reports 
on  the  decisions  made  by  the  Fuehrer  at  the  conference  on  12 
Dec.  (compare  War  Diary  12  Dec). 


9862 

-145- 


15  Dec.  19J  CC 

Situation  15  Dec.  19*11 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

North  Atlantic : 

RAMILLIES  vas  located  on  a  north- south  route,  presum- 
ably with  convoy  WS  14.   ROYAL  SOVEREIGN,  which  escorted' convoy 
WS  12  Z,  was  located  in  the  Freetown  area  on  13  Dec.   .-.ccording 
to  documents  available  to  the  Japanese  Navy,  the  following  Brit- 
ish ships  are  in  recair  In  U.S.  ports:   Carriers  PORMIDA    and 
ILLUSTRIOUS;   battleships  WARSPITE  and  MALAYA,  the  latter  doubt- 
ful;  cruisers  EIDO,  ORION,  LIVERPOOL,  NEWCASTLE,  MANCHT 
destroyers  BIRMINGHAM,  NASTURTIUM,  FIREDRAKE;   corvette  PRIMROJ 
auxiliary  cruisers  MINESTEAUS  and  CALIFORNIA.   According  to  re- 
putedly reliable  sources,  Britain  and  the  U.S.  intend  to  occupy 
the  Azores,  Cape  Verde  and  Dakar  in  the  near  future. 

It  is  entirely  possible  that  only  Japan's  unex- 
pected entry  into  the  war  caused  a  temporary  post- 
ponement of  this  plan. 

South  Atlantic: 

Radio  monitoring  service  reports  the  auxiliary  cruisers 
BULOLO  and  ASTURIAS  east  of  Rio  and  Bahia.   DEVONSHIRE  end  auxili- 
ary cruiser  CANTON  are  en  route  to  Freetown.   Colombia  has  put 
her  ports  at  the  disposition  of  the  U.S..  Uruguay  is  said  to 
plan  installation  of  a  naval  and  air  base  in  the  province  of  Rocha, 
Press  reports  state  that  the  Lloyd  Brasileiro  has  not  yet  received 
directives  to  discontinue  trips  to  Europe.   The  Argentine  Navy  De- 
partment on  the  other  hand,  has  issued  orders  to  all  ships  to  re- 
turn home  or  to  enter  U.S.  ports. 

Indian  Ocean: 

Press  reports  state  that  the  Dutch  cruisers  DE  RUYTER, 
JAVA,  TROMP  and  presumably  also  SUMATRA,  as  well  as  seven  de- 
stroyers and  twelve  submarines  are  in  the  East  Indies. 

2.  Own  Situation: 
Nothing  to  report. 


1 


a 


II.   Situation  West  Area 


1 .    Enemy  Situation: 


The  German  Consulate  at  Santander  reports  that  on  12 
Dec.  British  planes  unsuccessfully  attacked  the  Spanish  coastal 
steamer  TREVILLA  and  one  French  coastal  steamer  about  l/2  mile 


-146- 


15  Dec.  194l  CONFIDENTIAL 

off  the  coast  of  Cape  Mayor. 

2.   Own  Situation: 

Atlantic  Coast: 

Nothing  to  report. 

Channel  Coast: 

The  Army  Battery  at  Cape  Gris  Nez  shelled  the  radio  sta- 
tion at  Dover.   20  rounds  were  fired,  effect  "was  not  observed. 


♦ 


* 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 
Enemy  Situation: 
Limited  air  activity. 
Own  Situation: 
Nothing  to  report. 

2.  Norway : 

Enemy  Situation: 

No  reports . 

Own  Situation: 

LUEDERITZ,  the  8th  PT  Flotilla  and  the  15th  Minesweeper 
Flotilla  arrived  in  Tromsoe.  Enemy  air  activity  over  Oslo.  Mine- 
layer COBRA  departed  from  Swinemuende  and  is  proceeding  to  the 
North  Area. 

Concerning  the  STEINBECK  affair,  the  Commanding  Admiral,  Subma- 
rines and  the  Commanding  Admiral,  Norway  disagree  as  to  the  guilt  of 
the- commanding  officer  of  the  submarine.   The  Commanding  Admiral, 
Submarines  is  of  the  opinion  that  the  commanding  officer  of  the 
submarine  cannot  be  blamed  in  view  of  incomplete  or  nonexistent 
information  on  conditions  in  the  North  Area.   The  Commanding  Ad- 
miral, Norway,  on  the  other  hand,  is  of  the  opinion  that  every 
submarine  commander  must  realize  that  it  is  highly  probable  that 
some  of  our  own  convoys  will  be  in  the  vicinity  of  our  bases. 
Therefore  only  those  convoys  should  be  attacked  which  have  defi- 
nitely been  identified  as  those  of  the  enemy  (see  Radiogram  1110 
of  14  Dec.  and  1655  of  15  Dec). 

The  merits  of  the  case  can  only  be  discussed  after 
we  have  the  reports  from  the  investigating  author- 
ities. 


-147- 


15  Dec.  1941  CONFIDENTIAL 

The  Commanding  Admiral,  Norway  deems  it  necessary  that  at  least 
nine  submarines  be  at  his  disposal  if  three  submarines  are  to  pa- 
trol the  Arctic  Ocean  at  all  times.  He  is  of  the  opinion  that  in 
view  of  the  extent  of  the  operational  area  and  the  almost  complete 
absence  of  aerial  reconnaissance  it  will  be  necessary  to  have  sev- 
eral submarines  operate  simultaneously  if  they  are  to  be  effective 
at  all.   Thus  three  submarines  in  the  operational  area  would  con- 
stitute an  absolute  minimum  which  should  be  raised  very  soon. 
Furthermore,  Commanding  Admiral,  Norway  objects  to  the  practice 
followed  so  far  of  assigning  to  him  only  new  submarines  which  have 
had  no  combat  service.  According  to  Commanding  Admiral,  Norway, 
the  Admiral,  Arctic  Ocean  should  be  assigned  experienced  submarine 
commanders  and  the  submarines  under  his  command  should  not  be 
changed  so  frequently.   The  Commanding  Admiral,  Submarines  was 
aaked  by  the  Naval  Staff  to  give  his  opinion  on  the  subject,  and  he 
reported  that  it  will  most  likely  not  be  possible  to  comply  with 
the  request  of  the  Commanding  Admiral,  Norway,  since  this  would 
necessitate  the  transfer  of  experienced  submarine  commanders  and 
seasoned  submarines  from  the  Atlantic  and  the  Mediterranean.   Plow- 
ever  the  Commanding  Admiral,  Submarines  is  willing  to  leave  the 
submarines  in  the  Northern  Area  for  a  longer  period  of  time  so 
that  they  can  complete  more  phan  one  mission.   This  will  be  done 
insofar  as  time  and  other  circumstances  allow.  The  Naval  Staff  a- 
grees  with  the  Commanding  Admiral,  Submarines.   See  War  Diary, 
Part  C,  Vol.  IV  for  the  corresponding  teletype.  Entry  made  as 
per  Naval  Staff,  Operations  Division,  Liaison  with  Submarine  Sec- 
tion, l/Skl  Iu  2085/41  op  and  2110/41  op  Gkdos.  Chefs. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 
Nothing  to  report. 


V.   Merchant  Shipping: 

The  Intelligence  Division,  Naval  Staff  drew  up  a  comprehensive 
report  on  the  world  tanker  space,  its  extent,  activities  and 
missions.   It  concludes  that  2,572,227  BRT  of  tanker  space  are 
at  present  still  available  for  supplying  the  British  homeland, 
and  that  another  938,181  BRT  are  available  to  supply  the  rest 
of  the  Empire.   Counting  on  five  round  trips  annually,  these 
tankers  have  an  annual  capacity  of  about  26,000,000  tons.   Since 
the  estimated  maximum  oil  consumption  of  the  British  Empire  is 
approximately  25,000,000  to  26,000,000  tons,  the  British  oil  sup- 
ply is  so  far  still  assured.   This  calculation  does  not  even 
take  into  account  supplies  on  hand  or  tankers  that  may  be  built. 
A  summary  may  be  found  in  report  No.  34/41  of  the  "Foreign  Mer- 
chant Shipping"  series  of  the  Intelligence  Division,  Naval  Staff, 


9862 

-148- 


15  Dec.  19^1  CONFIDENTIAL 

■VI.   Submarine  Warfare 

1.  Enemy  Situation: 

The  Norwegian  steamer  NIDARDAL  (2,368  BRT)  was  sinking 
on  the  evening  of  15  Dec.  about  250  miles  southwest  of  the  Rock- 
all  Bank.  Aerial  reconnaissance  repeatedly  located  submarines 
in  the  sea  area  west  of  Gibraltar.  An  Italian  report  states  that 
the  convoy  which  left  Gibraltar  14  Dec.  in  a  westerly  direction 
has  turned  back  and  returned  to  the  Mediterranean.   No  confirma- 
tion of  this  highly  improbable  report  has  yet  been  received  from 
radio  intelligence. 

2.  Own  Situation: 

Two  or  three  FW  200' s  are  on  aerial  reconnaissance  to 
locate  the  convoy  near  Gibraltar.   Submarine  U  "557"  reports  de- 
tails on  the  sinking  of  the  enemy  cruiser  in  the  eastern  Mediter- 
ranean.  The  report  states  that  the  cruiser,  presumably  of  the 
AURORA  class,  was  sailing  as  the  third  ship  in  a  column  and  was 
hit  by  three  torpedoes  at  a  distance  of  2,500  meters.   The  cruiser 
sank  within  two  minutes  after  a  voilent  boiler  or  ammunition  ex- 
plosion.  The  crew  of  the  tanker  BADAL0NA,  which  was  sunk  by  a 
German  submarine,  arrived  in  Malaga  on  13  Dec.   The  captain  of 
the  tanker  is  not  certain  about  the  nationality  of  the  attacking 
submarine.   The  German  Naval  Attache  at  Madrid  reports  that  there 
is  great  excitement  in  the  Spanish  Navy  about  the  recurrence  of 
such  an  incident  and,  if  possible,  asks  for  confirmation  that  no 
German  submarine  is  involved.   For  further  discussions  with  the 
Foreign  Office  concerning  this  matter  see  War  Diary,  Part  C, 
Vol.  VIII.   See  War  Diary,  Part  B,  Vol.  IV  for  a  detailed  report 
on  the  situation  including  the  distribution  of  the  submarines  in 
the  operational  zones  in  the  Atlantic  and  the  Mediterranean. 


VII.  Aerial  Warfare 

i*    i 

1.  British  Isles  and  Vicinity: 

No  important  events  during  the  day.   In  the  evening 
27  planes  went  on  a  mine-laying  mission  in  the  mouth  of  the  Hum- 
ber.   8  planes  flew  armed  reconnaissance  missions  against 
shipping  without  success. 

2.  Mediterranean  Theater: 
Nothing  to  report. 

3.  Eastern  Front: 

There  are  no  reports  on  hand  as  yet  concerning  aerial 
activity  in  the  East.   See  Enemy  Situation,  Black  Sea  for  re- 
ports on  reconnaissance  mission. 


-149- 


9862 


15  Dec.  1941  CONFIDENTIAL 

4.   .  Organization: 

See  War  Diary,  Part  C,  Vol.  V  for  the  opinion  given  by 
Naval  Staff,  Operations  Division  concerning  the  return  transfer 
of  naval  officers  attached  to  the  Air  Force  before  expiration  of 
their  tour  of  duty.   Entry  made  as  per  Naval  Staff,  Operations 
Division,  l/Skl  28560/41  Gkdos. 


VIII.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation: 
Western  Mediterranean: 
Nothing  to  report. 

Central  and  Eastern  Mediterranean: 

Until  the  evening  of  14  Dec.  aerial  reconnaissance  and 
submarines  repeatedly  sighted  the  strong  enemy  naval  forces  which 
operated  on  14  Dec.  south  of  Crete.   On  15  Dec.  aerial  reconnais- 
sance sighted  2  or  3  cruisers,  4  destroyers  and  7  steamers  in 
Malta.  Aerial  reconnaissance  over  the  sea  region  off  Tobruk  lo- 
cated a  convoy  of  4  merchantmen  and  a  naval  force  consisting  of 
1  battleship,  2  cruisers  and  3  destroyers  on  a  westerly  course. 
5  destroyers  were  sighted,  off  Alexandria  on  an  easterly  course. 

2.  Own  Situation: 
Nothing  to  report. 

3.  Situation  Italy: 

A  belated  report  states  that  VITTORIO  VENETO  received 
a  torpedo  hit  from  an  enemy  submarine  the  morning  of  14  Dec.  at 
the  southern  exit  of  the  Straits  of  Messina.  Repairs  will  take 
six  weeks. 

4 .  Transport  of  Supplies  to  North  Africa : 

There  are  as  yet  no  reports  of  the  scheduled  arrivals 
of  torpedo  boats  and  transport  submarines  in  the  ports  of  Ben- 
ghazi, Derna  and  Bardia. 

The  German  Naval  Command  in  Italy  reports  that  the  interrupted 
supply  operation  is  scheduled  to  be  resumed  on  16  Dec.  in  the 
form  of  2  convoys.   These  will  be  accompanied  by  a  convoy  escort 
group  consisting  of  battleship  DUILIO,  cruisers  AOSTA,  ATTENDOLO, 
MONTECUCCOLI,  and  an  auxiliary  group  consisting  of  the  battle- 
ships LITTORIO,  DORIA,  CESARE,  cruisers  GORIZIA,  TRENTO,  and  10 
destroyers.  Convoy  No.  1  will  include  three  steamers  for  Tripoli, 
convoy  No.  2  one  steamer  for  Benghazi. 


9662 

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15  Dec.  19^1  CONFIDENTIAL 

5.   Area  Naval  Group  South: 

Aegean  Sea: 

Transport  operations  proceeding  according  to  plan  with- 
out noteworthy  events. 

Black  Sea: 

Enemy  Situation: 

Aerial  reconnaissance  reports  11  large,  8  medium  and 
small  steamers  in  the  harbor  of  Sevastopol.   Further  ships  are  on 
their  way  to  the  port.  A  convoy  with  five  apparently  loaded  mer- 
chantmen under  torpedo  boat  escort  was  reported  near  Cape  Khersones 
No  course  was  given. 

Own  Situation: 

The  steamer  CARPATI  is  again  icebound.   Otherwise  noth- 
ing to  report. 


IX.   Situation  East  Asia 

1.  Enemy  Situation: 

News  analysis  of  the  Naval  Staff,  Intelligence  Divi- 
sion concerning  Singapore  in  the  "Foreign  TJavies"  series  No. 

According  to  Reuter  and  radio  reports,  a  series  of  successes 
were  allegedly  scored  against  the  Japanese  naval  and  air  forces. 
However,  proof  or  confirmation  of  these  cannot  be  produced.   Par- 
ticularly the  claim  of  sinking  the  HARUNA  is  maintained,  and  in 
this  connection  special  attention  is  called  to  the  heroic  death 
of  U.S.  Captain  Colin  Kelly.  Furthermore,  Dutch  submarines  are 
said  to  have  sunk  four  loaded  Japanese  troop  transports  off 
Patani  and  southern  Thailand,  resulting  in  the  drowning  of  4,000 
Japanese. 

2.  Situation  Japan: 

The  Chief  of  the  Japanese  Admiralty  Staff  reported  to 
the  German  Naval  Attache  at  Tokyo  that  the  attack  on  Borneo  is 
scheduled  to  start  within  the  next  few  days  in  view  of  the 
elimination  of  the  British  battleships  and  the  good  progress 
made  in  other  operations . 

In  view  of  the  great  significance  of  Singapore  to  the  British 
position,  Britain  is  expected  to  do  everything  possible  to  hold 
this  point.   It  is  therefore  expected  that  Britain  will  transfer 
her  battleships  from  the  Mediterranean  and  the  Atlantic  to  East 
Asia.   Since  fullest  confidence  can  be  placed  in  the  Japanese 


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9862 


15  Dec.  1941  CONFIDENTIAL 

Naval  Air  Force,  Japan  only  welcomes  such  a  development.   Guam  is 
fully  occupied  by  the  Japanese.  A  landing  on  Wake  has  not  yet 
taken  place  because  of  the  bad  surf.   As  soon  as  weather  conditions 
permit,  the  landing  will  take  place. 

Only  six  aircraft  carriers  took  part  in  the  attack  on  Pearl  Harbor. 
Since  the  water  at  Pearl  Harbor  is  only  12  meters  deep,  a  special 
torpedo  was  used  which  was  developed  for  this  specific  purpose  as 
the  result  of  experiments  lasting  several  years.   PRINCE  OF  VALES 
was  hit  by  two  bombs  and  fifteen  torpedoes. 


X.   Army  Situation 

1 .  Russian  Front: 

Southern  Army  Group; 

Only  little  activity  on  the  entire  front  of  the  1st 
Panzer  Army  because  all  the  roads  are  out.  Enemy  attacks,  some 
of  them  rather  strong,  were  repulsed  in  the  17th  Army  sector. 
Little  movement  in  the  6th  Army  sector. 

Central  Army  Group: 

The  2nd  Army  arrested  enemy  penetrations  at  Livny. 
Our  own  losses  of  materiel  are  considerable.   The  XXXV  Army 
Corps  is  withdrawing  to  the  Kalmka  position  and  further  north. 
North  of  Tula  the  enemy  is  attacking  the  withdrawing  3rd  Armored 
Division.  A  strong  enemy  attack  with  air  support  was  repulsed 
on  the  new  line  from  Dyedilovo  to  the  west.   The  2nd  Army  and 
the  2nd  Panzer  Army  were  combined  into  the  2nd  Army  Group  under 
General  Guderian.   Only  little  action  on  the  4th  Army  sector. 
On  the  9th  Army  sector,  the  evacuation  of  Kalinin  has  begun  ac- 
cording to  plan.   Heavy  enemy  attacks  on  the  VI  Army  Corps  west 
of  Kalinin. 

Northern  Army  Group: 

Very  heavy  enemy  attacks  on  various  sectors  of  the 
Army  Group,  especially  on  both  sides  of  Volkhovstroy.  Enemy 
mass  attacks  from  Leningrad  to  the  south. 

2.  Finnish  and  Norwegian  Front: 
No  change  in  the  situation. 

3.  North  Africa: 

A  4  km  wide  enemy  penetration  in  the  Gazala  position 
had  not  been  stopped  by  evening. 

General  Rommel  intends  to  hold  the  area  south  and  southwest  of 
Gazala  through  16  Dec.  but  thinks  subsequent  withdrawal  in  the 


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15  Dec.  1941  CONFIDENTIAL 

direction  El  Mechili-Derna  will  be  unavoidable.   The  stamina  of 
the  troops  has  deteriorated  after  four  weeks  of  uninterrupted 
fighting  with  severe  casualties,  particularly  in  view  of  the  fact 
that  reinforcements  and  supplies  by  sea  never  arrived.   The  Com- 
mander, Air,  North  Africa  has  only  enough  fuel  on  hand  for  one 
mission,  unless  the  Ju  52 's  and  destroyers  bring  supplies. 

The  serious  set-back  which  is  readily  apparent  here 
is  the  unavoidable  result  of  the  failure  to  solve 
the  supply  escort  problem,  the  importance  of  which 
the  Naval  Staff  pointed  out  time  and  again  when 
something  could  still  have  been  done  about  it.  The 
feeble  manner  in  which  the  Italian  naval  forces  car- 
ried out  their  missions  which  resulted  in  failures, 
the  unshaken  enemy  base  of  Malta  in  the  middle  of 
the  area  through  which  our  supply  transports  must 
travel,  and  the  inadequate  measures  taken  by  the 
Axis  Air  Forces  to  keep  the  sea  lanes  to  North  Af- 
rica open,  have  for  all  practical  purposes  com- 
pletely throttled  our  supply  transports  to  Africa 
for  many  weeks.   Only  the  incredible  toughness  of 
the  German  Africa  troops  and  their  leaders  is  re- 
sponsible for  the  fact  that  resistance  continued 
for  so  long,  and  that  the  enemy  had  to  pay  for  his 
success  so  dearly. 


************** *********** 


9862 

-153- 


CONFIDENTIAL 

16  Dec.  19^1 

Items  of  Political  Importance 

Netherlands: 

Seyss  Inquart  made  a  speech  on  the  occasion  of  the  10th  anniver- 
sary of  the  Dutch  National  Socialist  Movement.  He  announced  that 
only  such  political  orientation  as  finds  expression  in  the  Nation- 
al Socialist  Movement  under  Mussert  will  henceforth  be  tolerated. 
All  other  organizations  and  political  movements  will  he  dissolved. 

Great  Britain: 

It  is  said  that  all  London  headquarters  of  European  governments 
in  exile  are  to  he  transferred  to  Washington.  The  conferences  on 
the  agreement  with  Russia  are  progressing  rapidly.  The  forthcom- 
ing agreement  is  to  be  the  continental  supplement  to  the  Atlantic 
Charter.  It  is  said  that  the  British  Government  has  resolved  not 
to  press  the  Russians  for  a  declaration  of  war  on  Japan  so  long 
as  Russia's  main  task  is  the  fight  against  the  German  armies. 

U.S.S.R. : 

United  Press  reports  that  the  Soviet  Government  has  returned  to 
Moscow. 

Turkey: 

A  report  from  the  German  Embassy  states  that  the  attitude  of  the 
Turkish  press  is  in  no  way  favorable  to  Germany.  A  venomous 
article  in  the  newspaper  Vatan  states  that  the  Anti-Comintern 
Pact  serves  no  other  purpose  than  that  of  procuring  cannon  fod- 
der for  the  German  campaign  against  Soviet  Russia.   The  so-called 
"European  Solidarity"  is  but  another  way  of  saying  "Enslavement 
'of  Europe".   Neither  orders  ncr  seizures  by  the  Government  have 
so  far  been  able  to  do  away  with  this  anti-German  attitude  in  the 
majority  of  Turkish  newspapers. 

U.S.A. : 

Secretary  of  the  Navy  Knox  personally  conducted  an  investigation 
of  the  shortcomings  of  the  U.S.  Hawaii  Command.  After  his  re- 
turn he  made  the  statement  that  the  battleship  ARIZONA  and  the 
training  ship  UTAH  are  lost,  but  that  the  capsized  battleship 
OKLAHOMA  can  be  raised.   In  addition,  three  destroyers  and  one 
minesweeper  were  also  sunk.  According  to  Knox,  these  losses 
have  not  upset  the  naval  balance  of  power  in  the  Pacific.  The 
fifth  column  was  more  effective  in  Hawaii  than  anywhere  else, 
with  the  possible  exception  of  Norway  previously.  A  copy  of  the 
full  text  of  the  Knox  declaration  may  be  found  in  War  Diary, 
Part  B,  Vol.  V. 


9862 

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16  Dec.  19^1  CONFIDENTIAL 


Japan : 

The  Japanese  press  has  started  a  campaign  against  the  British- 
coined  designation  "Par  East".   They  maintain  that  East  Asia  is 
the  center  of  the  -world.  As  a  matter  of  fact,  in  many  instances 
the  terms  "Anglo-Saxon"  and  "White  Race"  have  come  to  he  used 
interchangeably  in  this  var  of  ideologies. 

China: 

Britain  requested  Chiang  Kai  Shek  to  live  up  to  the  obligations, 
of  the  Chinese  military  pact  with  Britain  and  the  United  States. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

I.  The  Chief,  Naval  Staff,  Quartermaster  Division  reports  that 
priority  ratings  for  armament  production  have  been  changed.   The 
report  is  based  on  information  received  from  the  Mercedes-Benz 
Company  which  states  that  the  Air  Force  receives  preferred  treat- 
ment under  the  new  setup.   The  Navy  Ordnance  Department  explains 
that  the  new  priority  ratings  pertain  only  to  armament  manufac- 
turers who  are  entering  the  industry  and  who  can  produce  only  if 
they  are  allotted  an  additional  number  of  workmen.   This  will  not 
affect  the  basic  priority  system.   The  matter  is  under  investiga- 
tion. 

II.  The  Political  and  Propaganda  Section,  Naval  Staff  reports  on 
the  cessation  of  French  shipping  to  Martinique  and  the  United 
States.   The  Air  Force  sank  an  ore  steamer  in  Spanish  territorial 
waters  near  Huelva.   The  Fuehrer  has  decided  that  the  Spanish 
Government  is  to  receive  an  apology  for  this  incident. 


Special  Items: 

Deliberations  by  the  Chief,  Naval  Staff,  Operations  Division, 
Fleet  Operations  Section  on  the  problems  and  possibilities  of 
German  naval  warfare  against  Britain  and  the  United  States  are 
contained  in  War  Diary  Files  "Fundamental  Problems  of  Warfare". 


Situation  16  Dec.  19^1 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation: 

Special  Items: 

See  War  Diary,  Part  B,  Vol.  V  for  Naval  Staff,  Opera- 
tions Division  report  (l/Skl  29244/^1  Gkdos.).   This  report  con- 


9862 

-155- 


16  Dec.  19*U  CONFIDENTIAL 

tains  the  probable  locations  of  British  naval  forces  as  of  15  Dec. 
based  on  data  obtained  from  radio  monitoring  and  decoding. 

The  Naval  Staff  is  especially  anxious  that  reports  concerning  Brit- 
ish naval  forces  offer  an  explanation  for  the  unusually  heavy  con- 
centration of  merchant  ships  now  at  Gibraltar,  and  indicate  when 
and  where  future  enemy  landing  operations  might  possibly  take  place 
and  what  anti-submarine  defenses  there  are  around  Gibraltar.  A 
corresponding  request  was  sent  to  the  Naval  Representative  in  the 
Foreign  Intelligence  Section  of  the  Armed  Forces  High  Command; 
copies  to  the  Chief,  Naval  Communications  and  Naval  Attache  Sec- 
tion. 

North  Atlantic: 

A  foreign  agent  reports  that  a  U.S.  division  is  to  be 
transferred  to  Gibraltar  within  a  short  time.  Radio  London  states 
that  only  13  out  of  32  Axis  vessels  were  able  to  break  through  the 
blockade.  13  Axis  vessels  were  taken  as  prizes,  and  the  others 
returned  to  their  ports  of  origin. 

The  Spanish  mail  ship  service  to  New  York  and  Havana  has  been  dis- 
continued. 

South  Atlantic: 

The  radio  decoding  service  reports  that,  besides  ships 
so  far  located,  the  auxiliary  cruiser  DUNOTTAR  CASTLE  has  been 
in  the  Freetown  area  since  3  Dec. 

Pacific  Ocean: 

The  radio  decoding  and  monitoring  services  report  that 
a  danger  zone  was  announced  in  the  entrance  to  the  Madura  Strait 
(Java;.   It  was  also  announced  from  Singapore  that  all  beacons 
have  been  extinguished  in  Singapore,  the  Malacca  Strait,  Penang, 
on  the  eastern  and  western  coast  of  Malaya,  the  coasts  of  Borneo, 
and  the  Dutch  East  Indies.   On  11  Dec.  the  Commander  of  the  12th 
Naval  District  ordered  all  merchant  ships  in  the  northern  Pacific 
to  sail  by  way  of  a  point  located  in  27°  N,  127°  W. 

2.   Own  Situation: 

The  Naval  Attache  at  Tokyo  reported  the  arrival  of  the 
blockade-runner  KULMERLAND  at  Kobe  and  the  departure  of  OSORNO. 
He  also  reported  that  the  entire  Pacific  Ocean  has  been  declared 
a  war  zone,  and  that  ships  there  will  be  attacked  without  warn- 
ing.  See  Radiogram  2049  for  further  agreements  between  German 
Naval  Station  Tokyo  and  Naval  Staff,  Quartermaster  Division, 
Shipping  and  Transport  Branch  concerning  action  to  be  taken  by 
blockade-runners.  Radiogram  2049  also  contains  special  direct- 
ives for  rendezvous  of  motor  ship  PORTLAND  with  Japanese  naval 
forces. 

See  War  Diary,  Part  B,  Vol.  V  for  report  l/Skl  Ik  28922/41 
Gkdos.  from  the  Naval  Staff,  Operations  Division.   This  report 


-I56-  9862 


16  Dec.  19^1  CONFIDENTIAL 

contains  a  copy  of  the  recommendation  and  citation  for  awarding 
the  Oak  Leaf  Cluster  to  the  Knight's  Cross  of  the  Iron  Cross  to 
the  commanding  officer  of  ship  "16",  Captain  Rogge. 

Reports  on  the  enemy  situation  by  Radiograms  204}  and  2150. 


II.   Situation  West  Area 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation; 

Atlantic  Coast; 

Enemy  air  raids  on  Brest  from  1245  to  1257  and  from 
2011  to  0021.  Approximately  thirty  high  explosive  bombs  were 
dropped.  No  ships  were  damaged.  Group  West  reports  that  BENN0 
is  scheduled  to  depart  on  or  about  20  Dec  The  Naval  Staff,  Op- 
erations Division  requests  the  Naval  Staff,  Quartermaster  Divi- 
sion to  have  two  fast  tugboats  in  readiness  beginning  15  Jan. 
1942.  Each  of  the  tugboats  must  be  powerful  enough  to  tow  a  bat- 
tleship (or  heavy  cruiser)  from  berth  to  roadstead  or  into  the 
channel  and  back  to  berth  at  the  required  speed.  These  opera- 
tions will  become  necessary  during  the  impending  maneuvers  of  the 
Brest  Group  vessels.  For  the  text  of  the  request  from  Naval 
Staff,  Operations  Division  (l/Skl  29062/41  Gkdos.)  see  War  Diary, 
Part  B,  Vol.  V. 

Channel  Coast; 

Limited  enemy  air  activity  near  Dunkirk  during  the  day. 
Between  1915  and  1950,  coastal  battery  "Grosser  Kurfuerst" 
fired  twenty  rounds 'of  28  cm.  at  an  enemy  convoy  located  off 
Dover  on  a  southerly  course. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea; 

Enemy  Situation; 

The  radio  decoding  service  reports  that  KING  GEORGE  V 
was  probably  conducting  target  practice  in  the  Scapa  Flow  area 
at  noon  of  15  Dec. 

Own  Situation; 

Lively  enemy  air  activity  over  the  Dutch  coast  and 
over  Emden,  Wilhelmshaven,  and  Cuxhaven.  Vessels  lying  in  the 


-157_  '862 


16  Dec.  19^1  CONFIDENTIAL 

ports  were  attacked  unsuccessfully.  The  naval  bakery  and  rail  in- 
stallations at  the  ship-fitting  shop  in  Wilhelmshaven  were  slight- 
ly damaged.  Between  three  and  four  hundred  buildings  were  dam- 
aged in  Emddn.  Naval  anti-aircraft  artillery  shot  down  one  enemy 
plane . 

2.   Norway: 

Enemy  Situation: 

No  new  observations. 

Own  Situation: 

The  8th  Destroyer  Flotilla  departed  for  the  operation 
along  the  Murmansk  coast.  Destroyer  Z  26"  returned  to  port  be- 
cause of  engine  trouble.  Minelayers  M  "15"  and  M  "17"  were  loaded 
for  laying  an  anti-submarine  barrage  off  Petsamo.   One  minesweep- 
ing  cutter  of  the  56th  Minesweeper  Flotilla  ran  aground  near 
Terningen.   Two  steamers  collided  while  departing  from  Bergen. 
The  western  exit  of  the  Brei  Sound  (east  of  Hammerfest)  was  closed 
to  shipping  because  mines  are  suspected  in  that  area. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.   Enemy  Situation: 

A  court  order  confirmed  the  current  internment  of  the 
eleven  Norwegian  steamers  at  Goeteborg.   There  Is  therefore  no 
danger  that  these  ships  can  escape  in  the  near  future.   Proceed- 
ings to  intern  the  remaining  Norwegian  ships  in  Swedish  ports  al- 
so have  been  initiated. 

According  to  information  obtained  on  separate  occasions  from 
prisrners  of  war,  the  Russian  Baltic  Fleet  sustained  the  follow- 
ing losses  up  to  the  middle  of  November: 

a.   A  total  of  17  destroyers  were  sunk  as  follows: 

(1)  7  destroyers  were  sunk  by  the  German  Navy  with 
either  mines  or  torpedoes  (SMELY,  STOROZHEVOI,  SMETLXVI,  STATNI, 
SUROVI,  GORDI,  and  SKORl). 

(2)  3  destroyers  were  sunk  by  the  German  Air  Force 
with  bombs  (SERDITY,  KARL  MARX,  and  KALININ). 

(3)  4  destroyers  were  sunk  by  mine  hits  and  subse- 
quent bomber  attacks  during  the  retreat  from  Reval  (Tallinn). 
They  sank  with  the  entire  crew  (ARTEM,  VOLODARSKY,  SVERDLOV, 
and  ENGELS ) . 


9862 

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16  Dec.  1941  CONFIDENTIAL 

(4)   The  prisoners  knew  nothing  about  how  or  where  the 
other  two  destroyers  (GNIEVNI  and  STEREGUCHl)  were  lost.   PT  boats 
and  mines  probably  sank  these  in  the  Gulf  of  Riga  (Irbe  Strait). 
The  Russians  scuttled  one  destroyer  (ENGELS)  in  Libau. 

b.  The  prisoners  know  of  a  total  of  seventeen  submarines 
sunk.  Among  these  are  twelve  submarines  of  the  2nd  Submarine 
Brigade  (SHCH  class,  500  to  650  ton  submarines)  including  subma- 
rines "311",  "312",  and  "313". 

Furthermore,  the  prisoners  know  of  the  sinking  of  the  following 
submarines:   S  V,   S  "8",  S  "11",  S  "101",  and  S  "106". 

We  have  data  showing  the  loss  of  the  following  submarines:  RENIS 
and  SPIDOLA.   The  latter  was  scuttled  by  the  Russians  in  Libau. 
Submarine  M  "78"  was  sunk  en  route  from  Libau  to  Windau,  M  "77" 
hit  a  mine  northwest  of  Vorms  Island,  and  M  "8l"  was  probably  hit 
by  a  torpedo  south  of  Hangoe.   Submarine  S  "3"  was  sunk  by  PT 
boat  "35  between  Libau  and  Stein  Ort.  Also  sunk:   one  submarine 
of  the  M  class  by  German  submarine  U  "149"  and  one  submarine  of 
unknown  class  by  German  submarine  U  "140". 

We  may  therefore  count  on  having  destroyed  twenty  five  Russian 
submarines.  Available  data  shows  that  the  Air  Force  reported 
only  destroying  one  Russian  submarine  on  29  Aug. 

c.  Damaged  Russian  vessels: 

(1)  Damaged  by  the  Air  Force  with  bombs: 

One  battleship  (OKTYABRSKYA  REVOLUTSIYA) .   Hit  by  a 
bomb  in  the  middle  of  October.  Has  been  repaired 
and  is  again  ready  for  action.  MARAT,  badly  dam- 
aged by  bombs,  is  lying  in  Kronstadt,  out  of  com- 
mission. Flotilla  leader  MINSK  and  destroyer 
SILNY. 

(2)  Damaged  by  the  Navy  with  mines: 

Cruiser  MAXIM  GORKI,  flotilla  leader  LENINGRAD, 
destroyers  STRASHNY  and  GROSNY. 

d.  Cruiser  L  (formerly  LUETZOW)  badly  damaged  in  Leningrad 
by  Army  artillery  bombardment. 

e.  Besides  the  above  named  larger  vessels  and  submarines 
lost  and  damaged,  between  six  and  seven  torpedo  boats,  several 
PT,  boats,  and  many  minesweepers  were  sunk. 

These  ships  were  sunk  primarily  while  on  convoy  escort  and  mine- 
sweeping  duty. 


-159-  9862 


16  Dec.  1941  CONFIDENTIAL 

2.   Own  Situation: 

Group  North  reports  the  following  losses  sustained  by 
our  own  naval  forces: 

1  submarine 

4  minelayers;   j5  of  these  were  sunk  in  the  Swedish 
mine  field  on  their  way  home. 

2  PT  boats 

5  minesweepers;   3  of  these  by  explosion  in  Hel- 
sinki. 

5  auxiliary  minesweepers  (3  fishing  vessels,  2 
luggers) 

2  coast  patrol  vessels 

2  submarine  chasers 

2  minelayers  were  lost  during  the  sweeping  of  our 
own  mine  field  off  Kolberg. 

Torpedo  depot  ship  MOSEL  was  lost  in  the  mine  field 
off  Windau. 

A  number  of  minelayers  and  minesweepers  were  dam- 
aged by  bomb  and  mine  hits. 

The  cattle  ship  DELPHIN  (255  BRT)  was  sunk  in  the 
western  Baltic  (Kiel  Bay)  where  it  hit  a  mine. 

As  far  as  allocation  of  minesweepers  is  concerned,  we  cannot  risk 
a  further  delay  in  sweeping  a  mine- free  channel  to  Helsinki. 
Sweeping  operations  in  the  zone  of  the  Commander,  Defenses,  West 
are  also  extremely  urgent.  Therefore,  the  original  order  must 
stand  and  the  4th  Sweeper  Flotilla  must  remain  in  the  east  for  as 
long  as  ice  conditions  permit  sweeping  operations.   Only  then  will 
the  sweepers  be  returned  to  the  Commander,  Defenses,  West.   Even 
though  we  must  concede  the  difficulties  which  convoys  encounter  in 
northern  Norway,  it  will  be  necessary  for  the  Commanding  Admiral, 
Norway  to  do  the  best  he  can  with  forces  in  his  area.   It  is  at 
this  time  impossible  to  aid  him  with  reinforcements. 

A  corresponding  notice  is  sent  to  Groups  North  and  West  as  well  as 
to  the  Commanding  Admiral,  Norway  by  Radiogram  l6l6.   Group  North 
also  receives  orders  to  investigate  when  it  will  be  possible  for 
them  to  transfer  a  flotilla  of  new  minesweepers  from  their  zone  to 
Norway. 


V.   Merchant  Shipping: 

Report  No.  35/41  of  the  "Foreign  Merchant  Shipping"  series  was 
issued  by  the  Naval  Staff,  Naval  Intelligence  Division.   The  re- 
port contains  the  following  information: 

Data  on  British  chromium  ore  imports  from  Turkey,  carried  by 
small  Turkish  vessels  sailing  within  Turkish  territorial  waters 
and  delivered  to  the  port  of  Mersin  where  it  is  transferred  to 
British  vessels. 

Data  on  shipping  in  the  eastern  Mediterranean,  with  special 
attention  to  Alexandria  and  Suez  Canal  ports.   Data  on  whaling 


-160-  •  9862 


16  Dec.  1941  CONFIDENTIAL 

between  1939  and  19^0.   It  Is  estimated  that  ten  to  twelve  float- 
ing factories  with  a  total  tonnage  of  105,000  to  130,000  BRT  will 
probably  operate  in  the  antarctic  region  during  the  whaling  sea- 
son from  Dec.  19^1  to  the  beginning  of  March  1942. 


VI.  Submarine  Warfare 

1.  Enemy  Situation: 

Radio  monitoring  intercepted  reports  from  enemy  aircraft 
which  state  that  a  submarine  was  attacked  80  miles  southwest  of  St. 
Nazaire  and  another  one  off  Gibraltar.   The  enemy  convoy,  which  ac- 
cording to  Italian  reports  had  returned  to  the  Mediterranean,  was 
located  In  the  Atlantic.   Its  location  was  approximately  70  miles 
northwest  of  Casablanca  at  noon  of  15  Dec.  The  convoy  is  made  up 
of  the  following  vessels:  28  steamers,  1  aircraft  carrier,  6  de- 
stroyers, and  4  coastal  patrol  vessels.  The  course  of  the  convoy 
was  not  reported. 

2.  Own  Situation: 

Our  aerial  reconnaissance  located  an  enemy  convoy  on 
westerly  course  about  100  miles  west  of  Casablanca.   German  subma- 
rines established  contact  with  the  convoy.   On  14  Dec.  German  sub- 
marines sank  an  unknown  steamer  of  7,000  BRT  in  the  vicinity  of 
Gibraltar.  For  a  further  report  on  the  situation  see  War  Diary, 
Part  B,  Vol.  IV. 

The  need  for  regular  weather  forecasts  forces  us  to  lay  out 
weather  buoys.  Radiogram  1717  directs  the  Commanding  Admiral, 
Submarines  to  have  submarines  lay  out  two  weather  buoys  in  the 
Rockall  Bank  and  Porcupine  Bank  areas.  Details  will  be  arranged 
directly  between  the  Chief,  Naval  Staff,  Meteorological  Section 
and  the  Commanding  Admiral,  Submarines. 

In  connection  with  the  sinking  of  steamer  STEINBECK,  Group  North 
requests  the  Commanding  Admiral,  Submarines  to  advise  all  sub- 
marines in  the  zone  of  operations  that  German  ships  are  sailing 
within  the  following  areas:   The  entire  Baltic  Sea;   the  Baltic 
Sea  Entrances;   the  Kattegat  and  Skagerrak;   and  along  the  sectors 
of  the  Norwegian,  North  Sea,  and  Channel  coasts  within  the  command 
zone  of  the  Group.  Therefore,  ships  in  these  areas  are  not  to  be 
attacked  unless  their  enemy  identity  has  been  established  beyond 
doubt. 

The  Commanding  Admiral,  Submarines  reports  as  follows  on  the  sit- 
uation in  the  shipyards  constructing  submarines:   "Present  con- 
ditions In  final  fitting  operations  on  newly  built  submarines  in 
German  shipyards  must  be  improved  at  once.   As  a  result  of  the 
manpower  shortage,  final  fitting  operations  now  require  six  to 
seven  weeks  instead  of  three  to  four  weeks  as  formerly.   Twenty 
four  submarines  are  at  present  in  final  fitting.  Every  two  weeks 


-161- 


16  Dec.  19^1  •  CONFIDENTIAL 

an  additional  ten  submarines  arrive  at  each  of  the  shipyards  doing 
final  fitting.   Since  submarines  leave  the  shipyards  at  a  much 
slower  rate,  because  of  the  length  of  time  needed  to  finish  them, 
we  may  soon  expect  a  complete  congestion  of  German  shipyards. 
This  will  entail  a  long  delay  in  putting  new  submarines  into  action, 
For  example,-  only  two  of  the  submarines  in  the  final  fitting  stage 
will  be  completed  by  20  Dec.  while  ten  additional  submarines  will 
arrive  on  that  day.   This  means  that  the  number  of  submarines 
undergoing  final  fitting  will  at  that  time  already  have  reached 
thirty  two.  The  Commanding  Admiral,  Submarines  proposes  four  rem- 
edies for  this  condition  which  makes  submarine  warfare  practically 
impossible : 

"(1)  An  immediate  increase  in  the  number  of  workmen  assigned 
to  submarine  fitting.  This  can  be  done  by  discontinuing  a  great 
part  of  the  repair  work  on  surface  vessels. 

"(2)  No  further  drafting  of  repair  specialists  into  Army  or 
Air  Force.  For  example,  the  two  shipyards  in  Danzig  lost  350 
workers  to  the  Army  only  recently. 

"(3)  Make  it  a  rule  that  final  fitting  and  overhauling  are 
done  by  the  same  shipyard  which  built  the  submarine.   The  original 
builder  is  more  interested  in  completing  his  own  submarine  and 
works  faster  on  it  than  on  a  submarine  coming  from  another  yard. 
In  these  shipyards  submarines  must  be  given  priority  over  any 
repairs  on  surface  vessels. 

"(4)  If  no  other  alternative  is  found,  then  the  construction 
of  new  submarines  in  certain  yards  must  be  curtailed  until  their 
manpower  shortage  for  submarine  repairs  has  been  alleviated.  The 
situation  may  also  be  improved  by  concentrating  the  construction 
of  new  submarines  in  shipyards  of  adequate  capacity.  This  would 
mean  that  those  smaller  yards  which  need  a  month  and  a  half  for 
building  a  new  submarine  must  transfer  their  contracts  to  the  lar- 
ger yards  which  have  a  specified  number  of  workers.  A  decision 
must  be  made  at  once."   (See  Radiogram  20^0.) 

Naval  Staff  will  review  this  urgent  problem  with 
the  Naval  Construction  Division  and  the  Chief  of 
the  Submarine  Division  of  the  Naval  Staff.   The  fi- 
nal decision  in  the  matter  will  be  made  by  the 
Chief,  Naval  Staff.  The  proposals  contained  in 
Paragraph  (k)   will  undoubtedly  bring  about  the 
greatest  improvement.   Therefore,  they  will  have 
to  be  put  into  practice  without  delay. 

According  to  a  new  report  from  the  Naval  Attache,  the  Spaniards 
are  certain  that  a  German  submarine  sank  the  tanker  BADALONA. 
If  so,  the  Attache  proposes  sending  a  friendly,  clear  explana- 
tion to  the  Spanish  Government,  with  the  urgent  request  that 
Spanish  ships  be  made  to  observe  international  regulations  (Radio- 
gram 1518).  A  clarification  of  the  affair  to  this  effect  is  al- 
ready in  progress.   The  Naval  Staff  deems  it  necessary  to  give 
the  DOGGERBANK  a  submarine  escort  in  view  of  her  importance.   The 


9862 

162- 


16  Dec.    19^1  CONFIDENTIAL 

Naval  Staff  tends  to  believe  that  the  submarines  departing  for 
operation  "Paukenschlag"  on  the  U.S.  East  Coast  will  be  able  to 
escort  the  DOQGERBANK,  in  which  case  some  delay  in  the  ship*s  de- 
parture is  acceptable. 

Group  West  and  Commanding  Admiral,  Submarines  are  informed  accord- 
ingly. Both  authorities  are  directed  to  review  the  matter  together 
and  to  report  their  findings. 


* 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

Armed  reconnaissance  reported  that  a  3>000  BRT  steamer 
near  Kinnairds  Head  and  a  600  BRT  steamer  near  Milford  were  dam- 
aged by  bombs.  Six  enemy  planes  were  shot  down  during  daylight 
raids  in  the  West  Area.   In  the  evening  seventeen  German  planes 
went  on  mining  missions  in  the  Humber  estuary.  Eight  planes  went 
on  armed  reconnaissance  against  enemy  shipping,  and  seven  raided 
Dover.  During  the  night  of  16  Dec.  enemy  air  activity  in  the 
Flensburg-Schle swig-Bremen  area  and  over  Brest  (see  Situation 
West  Area) . 

2.  Mediterranean  Theater; 

A  delayed  report  of  Ik   Dec.  tells  of  a  Stuka  attack  on 
a  cruiser.  The  cruiser  received  two  bomb  hits  amidships  and  one 
hit  close  to  the  gunwale.    The  Stuka  was  hit  by  anti-aircraft 
artillery  and  was  thus  unable  to  observe  further  results. 

J.   Eastern  Front; 

Light  aerial  activity  in  support  of  the  Army. 


* 


VIII.  Warfare  in  the  Mediterranean 

1.   Enemy  Situation; 

Western  Mediterranean; 

The  following  vessels  are  lying  in  Gibraltar: 

Task  Force  H  without  UNICORN 

2  auxiliary  cruisers 
10  destroyers 

7  gun  boats 
1  submarine 

J>2   steamers 

8  torpedo  boats 


9862 

-163- 


•16  Dec.  19^1  CONFIDENTIAL 

A  Spanish  report  states  that  one  coastal  patrol  vessel  sank  in  the 
Strait  of  Gibraltar  after  an  explosion  during  the  night  of  10  Dec. 

Central  and  Eastern  Mediterranean: 

The  following  vessels  were  lying  in  Malta  during  the 
morning  and  afternoon: 

2  light  cruisers 
2  destroyers 
several  submarines 
8  to  10  merchantmen. 

Italian  radio  monitoring  reports  that  AURORA  or  "Group  Aurora" 
was  at  sea.   Italian  aerial  reconnaissance  reports  that  an  enemy 
task  force  was  at  sea  north  of  the  Gulf  of  Solium  on  a  westerly 
course.   The  enemy  force  probably  included  a  battleship,  2 
cruisers,  and  8  destroyers.  Radio  monitoring  further  located  a 
convoy  in  the  vicinity  of  the  task  force  and  40  miles  south  of  it 
another  task  force  of  3  cruisers  and  7  destroyers.  Another  Italian 
report  states  that  a  convoy  escorted  by  a  cruiser  and  several  de- 
stroyers was  en  route  from  Haifa  to  Marsa  Matruh.  According  to  an 
Italian  report  6  U.S.  steamers  arrived  in  Port  Said  during  the 
night  of  11  Dec.   These  steamers  unloaded  100  armored  cars  and 
50  planes. 

2.  Own  Situation: 

The  3rd  PT  Flotilla  consisting  of  four  boats  left  on  a 
mission  at  1700. 

3.  Situation  Italy: 

Italian  aerial  photography  reconnaissance  on  11  Dec. 
shows  a  steamer  with  damaged  stern  in  dock  at  Malta.   This  proves 
that  the  attack  by  the  submarine  TRICHES0  on  30  Nov.  was  success- 
ful.  (See  War  Diary  7  Dec.)  However,  no  other  evidence  is 
available  (see  Radiogram  1300).   There  are  as  yet  no  reports  that 
ships  departed  for  the  supply  mission. 

4.  Transport  of  Supplies  to  North  Africa: 

Weather  conditions  are  causing  a  delay  of  one  or  two 
days  in  the  arrival  of  the  transport  submarines.   Nothing  further 
to  report. 

5.  Area  Naval  Group  South: 
Aegean  Sea: 

Enemy  Situation: 

The  German  Naval  Attache  at  Istanbul  reports  that  the 
Russian  tankers  SAKHALIN  and  AVANES0V  departed  at  0300  for  the 
Marmara  Sea. 


9662 

-164- 


16  Dec.  1941  CONFIDENTIAL 

Own  Situation: 

The  German  Naval  Command,  Italy,  the  23rd  Submarine 
Flotilla  and  Group  South  receive  instructions  that  Group  South 
or  Admiral,  Aegean  is  to  dispatch  a  submarine  at  once  in  order 
to  stop  Russian  tankers  from  breaking  through.   Copy  of  the  di- 
rective is  sent  to  Admiral,  Aegean. 

Black  Sea; 

Enemy  Situation; 

The  Russians  attempted  landings  at  Eupatoria  during  the 
night  of  15  Dec,  assisted  by  a  Russian  destroyer  and  two  PT  boats. 
German  naval  troops,  military  police,  and  Army  coastal  batteries 
repulsed  the  attack. 

Ovn  Situation; 

The  operation  of  the  DELFINUL  was  discontinued  because 
of  weather  conditions  and  overconsumption  of  fuel.   Otherwise 
nothing  to  report. 

Radiogram  13^5  from  Group  South  proposes  that  offices  of  the 
Reich  Commissar  at  the  Berlin  Prize  Court,  Southeast  be  transferred 
to  either  Berlin  or  Vienna.   Operations  in  the  southeast  theater 
no  longer  require  that  these  offices  be  located  permanently  in 
that  area.  Further  steps  concerning  this  matter  will  be  taken  by 
the  Naval  Staff,  Quartermaster  Division. 

It  is  planned  to  transfer  a  number  of  vessels  from  their  home 
bases  in  Germany  to  the  southeastern  theater.   In  addition, 
Group  South  requests  action  as  follows: 

a.  Transfer  of  ah  experienced  PT  flotilla  to  the  Black  Sea  as 
soon  as  ice  conditions  in  the  Danube  permit.   The  Russian  situa- 
tion leads  us  to  expect  a  continuation  of  operations  in  the 
spring,  in  which  case  the  Army  will  be  very  much  dependent  on 
Navy  support.   Group  South  considers  a  PT  flotilla  of  at  least 
ten  boats  best  suited  to  render  such  support  in  the  mdst  effect- 
ive manner.   Naval  support  will  be  indispensable  to  Army  opera- 
tions. However,  without  such  a  flotilla  such  support  will  be  as 
inadequate  as  it  was  this  year  because  of  lack  of  sufficient 
forces.  We  might  try  to  transfer  the  flotilla  to  the  Aegean  Sea 
as  soon  as  the  naval  situation  in  the  Black  Sea  has  been  brought 
under  control  in  the  course  of  the  next  year.   If  this  is  still 
impossible,  the  flotilla  can  always  be  withdrawn  to  the  north- 
ern theater  of  war  via  the  Danube. 

b.  A  number  of  auxiliary  minesweepers  are  to  be  transferred  to 
the  Black  Sea  in  spring  19^2,  but  they  will  probably  not  be  able 
to  operate  Immediately  upon  arrival.   Therefore,  Group  South  pro- 
poses that  a  large  experienced  minesweeper  flotilla  also  be  trans- 
ferred to  the  Black  Sea  together  with  the  PT  flotilla  as  a  second 
wave  of  reinforcements.   It  may  be  impossible  to  spare  the  mine- 


9862 

-165- 


16  Dec.  19^1  CONFIDENTIAL 

sweeper  flotilla  for  permanent  duty  In  the  Black  Sea  and  later  on 
in  the  Aegean.   In  that  case  it  could  return  home  as  soon  as  the 
auxiliary  minesweeper  flotilla  is  ready  for  action.  The  minesweep- 
er flotilla  is  needed  for  the  same  purpose  as  the  PT  flotilla. 

c.  It  is  already  apparent  that  a  large  number  of  naval  barges 
must  be  used  for  transport  and  supply  operations  in  the  Black  Sea 
as  well  as  the  Aegean  Sea.  The  submarine  menace  will  Increase 
rather  than  decrease,  while  we  are  able  to  do  but  little  about  re- 
inforcing our  anti-submarine  defenses.  For  this  reason,  barges 

are  the  safest  and  best  suited  means  of  transport.  They  do  not  have 
to  have  an  escort,  and  the  risk  of  materiel  and  personnel  in  each 
case  is  small.  Group  South  therefore  recommends  making  available 
an  additional  twenty  barges  during  the  coming  winter  for  Black  Sea 
operations.  These  barges,  as  well  as  replacements  for  them  as  the 
need  arises,  are  to  be  built  in  Varna.  Naval  barges  will  also 
play  an  important  part  during  future  Army  operations  as  a  support 
for  landings,  etc..  Already  this  year  the  Navy  was  called  upon 
to  perform  such  duties.  However,  because  of  a  lack  of  suitable 
craft,  the  Navy  was  not  up  to  the  task,  for  Siebel  ferries  have 
engines  and  therefore  are  no  substitute  for  barges.  Group  South 
proposes  that  Admiral,  Aegean  at  once  order  the  construction  of 
fifty  naval  barges.  The  most  adequate  building  facilities  will 
probably  be  found  in  Palermo.   It  is  desired  that  the  first  bar- 
ges be  delivered  as  soon  as  possible.   If  necessary,  special  ar- 
rangements must  be  made  with  the  Naval  Shipping  and  Transport  Of- 
fice, Rome.   There  can  be  no  large-scale  transfer  of  barges  from 
the  Black  Sea  to  the  Mediterranean,  especially  not  in  view  of  the 
fac\-  that  it  is  doubtful  whether  the  barges  would  ever  be  allowed 
to  pass  the  Dardanelles.  As  far  as  we  know,  the  sea  lion  (refer- 
ence to  operation  "Seeloewe",  the  Invasion  of  the  British  Isles, 
Tr.N.)  will  be  asleep  for  quite  a  while.  Therefore,  it  might  be 
possible  to  transfer  the  barges  built  for  that  purpose  to  the  Black 
Sea  or  the  Mediterranean. 

d.  Group  South  proposes  an  investigation  of  the  possibilities 
for  equipping  the  small  merchantmen  which  are  to  be  built,  with 
detecting  gear  (S-Geraet).  Construction  of  these  vessels  is  very 
essential.  However,  it  seems  unlikely  that  any  of  them  will  be 
completed  during  19^2  (see  Radiogram  13^5). 

6.   Situation  Turkey; 

The  Italian  Navy  submitted  the  following  estimate  of 
the  situation: 

a.  Shipping  in  the  Black  Sea,  discontinued  on  25  Nov.  after  two 
Turkish  steamers  were  torpedoed,  has  been  resumed.  However,  all 
ships  travel  at  their  own  risk. 

b.  The  report  that  new  reserves  have  been  called  up  and  that 
all  furloughs  were  cancelled  has  not  been  confirmed. 


9662 

-166- 


16  Dec.  19^1  CONFIDENTIAL 

c.  It  has  been  confirmed  that  troops  were  transferred  to  the 
Syrian  "border  on  4  Dec. 

d.  It  is  said  that  an  agreement  on  the  reinforcement  of  the 
Turkish  Army  and  Air  Force  is  under  discussion  in  Ankara.  This 
news  seems  likely  in- view  of  the  recent  U.S.  declaration  con- 
cerning shipment  of  war  materiel  to  Turkey  under  Lend-Lease. 

e.  Although  there  is  no  confirmation  concerning  British  and  Rus- 
sian demands  for  lease  of  naval  and  air  "bases,  it  is  known  that 
there  have  been  conferences  concerning  such  leases.  The  Turkish  . 
Government  was  promised  full  guarantees  of  sovereignty  and  inde- 
pendence as  well  as  military  assistance  at  sea  and  in  the  air  if 
bases  should  be  demanded. 

All  in  all  there  is  no  doubt  that  Turkey  is  subject  to  heavy  pres- 
sure from  the  enemy.   It  is  not  impossible  that  Turkey  is  willing 
to  agree  to  some  of  the  demands  made  so  that  she  can  preserve  her 
neutrality  at  least  for  the  time  being. 

7.   Situation  France; 

The  Admiral,  France  and  Admiral  Darlan  discussed  the 
question  of  further  training  and  possible  future  operations  of 
the  French  Fleet.  Admiral  Darlan  declared  that  this  depends 
mainly  on  the  fuel  oil  supply  and  the  manufacture  of  ammunition. 
French  oil  reserves  are  sufficient  for  one  month.   Only  a  small 
reserve  of  ammunition  is  left.  None  but  the  most  urgent  repairs 
were  made  on  the  battleship  DUNKERQUE,  and  she  is  now  capable  of 
9  to  10  knots.  It  is  planned  to  send  a  naval  liaison  officer  to 
the  German  naval  stations  at  Cherbourg  and  Bordeaux.  Darlan  also 
declared  himself  willing  to  collaborate  with  the  German  Navy  in  the 
exchange  of  intelligence  reports  on  the  position  of  British  naval 
forces. 


IX.   Situation  East  Asia 

* 

1.  Enemy  Situation; 

Lord  Alexander  publicly  defended  the  conduct  of  Admiral 
Sir  Thorn  Philipps  in  the  battle  of  Malaya. 

2.  Situation  Japan; 

Following  are  Admiral  Ito's  comments  on  the  situation; 

No  one  can  dispute  our  control  of  the  South  China  Sea.  Malaya 
and  Singapore  are  doomed,  and  their  occupation  is  but  a  question 
of  time.  The  danger  threatening  us  from  the  Aleutians  in  the 
north  will  not  materialize  during  the  winter.  The  danger  from 
the  east  is  but  slight  since  the  enemy  lost  Guam  and  Wake. 
Equally  slight  is  the  danger  from  the  south  where  the  enemy  lacks 


9862 

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16  Dec.  1941  CONFIDENTIAL 

adequate  bases.   However,  from  the  west  our  positions  are  really 
nenaced.  As  soon  as  Singapore  is  in  our  hands  we  are  planning  to 
transfer  a  large  number  of  planes  to  that  base  by  way  of  Trincomalee, 
Madras,  and  Sumatra.  Later  we  shall  also  station  naval  forces  at 
Singapore.   Japanese  submarines  will  be  transferred  to  the  Indian 
Ocean  at  a  later  date.  Admiral  Ito  said  literally:   "The  morale  of 
the  American  fliers  is  worse  than  that  of  the  Chinese." 

A  report  from  the  Japanese  Naval  Attache  at  Berlin  states  that 
Japanese  troops  successfully  landed  on  British  Borneo  on  16  Dec. 
in  spite  of  unfavorable  weather  conditions.  The  route  to  Penang 
has  been  cut.   Reports  from  Bangkok  give  details  on  Japanese 
transport  operations  to  Malaya  by  sea  and  land  as  well  as  news  of 
the  Japanese  advance  on  the  Malay  Peninsula.   This  advance  was 
supported  by  additional  troop  landings  near  Trengganu  and  Kuantan. 
Japanese  submarines  operate  in  the  Indian  Ocean  in  order  to  cut 
sea  routes  to  Singapore. 


X.   Army  Situation 

1.  Russian  Front: 

Southern  Army  Group: 

There  was  but  little  fighting  on  the  1st  Panzer  Army 
sector  since  the  roads  are  out  in  the  area.   On  the  17th  Array 
sector  the  enemy  attacked  the  111th  Infantry  Division,  but  was 
stopped  by  our  artillery.   Isolated  enemy  attacks  on  the  6th 
Army  were  also  repulsed. 

Central  Array  Group: 

At  the  2nd  Army  sector  we  again  established  contact 
with  the  45th  Infantry  Division.  Enemy  attacks  were  repulsed 
near  Dyedilovo  and  south  of  Tula.   The  XLIV  Army  Corps  withdrew 
in  westward  direction  according  to  plan.   On  the  4th  Army  sector, 
air  and  artillery  intervention  prevented  the  enemy  from  follow- 
ing the  retreating  4th  Panzer  Group.   Lack  of  fuel  and  bad  road 
conditions  forced  us  to  destroy  heavy  weapons  and  other  equipment 
of  the  withdrawing  IX,  XL,  V,  and  LVI  Army  Corps.   In  the  9th 
Army  sector  we  blew  up  a  bridge  leading  over  the  Volga  at  Kalinin, 
and  the  troops  were  withdrawn  to  the  south.  Enemy  attacks  west  of 
Kalinin  were  repulsed. 

Northern  Army  Group: 

North  of  Lake  Ilmen  our  positions  near  Vlshera  were 
withdrawn.  Enemy  attacks  west  of  Tikhvin,  south  of  Schluessel- 
burg  and  south  of  Leningrad  were  repulsed. 

2.  Finnish  and  Norwegian  Front: 
Nothing  to  report. 


9862 

-168- 


16  Dec.    19^1  CONFIDENTIAL 

5.   North  Africa: 

Under  enemy  pressure  our  forces  withdrew  to  rear  posi- 
tions prepared  south  of  Derna. 


***♦*#»»******#**#♦***♦#* 


,^~  9862 

-169- 


CONFIDENTIAL 

17  Dec.  1941 

Items  of  Political  Importance 

France : 

The  French  press  in  Morocco  plays  up  the  significance  of  the  Dar- 
lan-Ciano  meeting.  They  hint  at  certain  differences  betveen  the 
Latin  Block  and  Germany. 

Qreat  Britain: 

Special  attention  is  being  given  to  Russo-Japanese  relations.  Al- 
though it  is  admitted  that  Russia  is  justified  in  wishing  to  avoid 
fighting  a  new  enemy  before  the  old  one  has  been  defeated,  it.  is 
pointed  out  that  an  early  elimination  of  Japan  would  nevertheless 
be  valuable.   In  this  connection  it  is  mentioned  that  the  Allies 
should  use  East  Siberia  as  a  base  for  direct  attacks  on  the  Japa- 
nese homeland. 

The  critical  situation  in  East  Asia  once  again  moves  the  British 
to  make  promises  to  the  Indians.  The  Viceroy  admonishes  all  In- 
dians to  put  aside  their  quarrels,  pointing  out  that  they  will  be 
given  a  constitution  some  time  hence,  which  among  other  things 
will  grant  self-government  to  those  provinces  which  do  not  have 
it  now. 

Australia: 

The  fear  of  a  Japanese  invasion  is  growing  day  by  day.   The  Prime 
Minister  stated  that  Australia  will  have  to  fight  for  her  life 
and  that  the  time  has  come  when  all  those  who  have  previously  re- 
ceived Australian  aid  must  now  come  to  her  help. 

Spain: 

The  Foreign  Minister  is  of  the  opinion  that  the  new  developments 
complicate  Spain's  economic  situation.  Spain  is  forced  to  ask 
the  Allies  to  resume  the  gasoline  shipments  which  were  stopped 
when  Spain  joined  the  Anti- Comintern  Pact.  Spain  must  also  re- 
quest more  favorable  conditions  for  her  imports  from  South  Amer- 
ica. 

Turkey: 

An  amendment  of  the  Compulsory  Military  Training  Act  raises  the 
term  of  active  duty  from  eighteen  months  to  three  years.   The 
British  Ambassador  at  Ankara  is  now  at  the  Cairo  Conference, 
which  is  to  decide  whether  British  troops  will  be  transferred 
from  the  Near  East  to  the  defense  of  Singapore. 


9862 

-170- 


17  Dec.  19^1 


CONFIDENTIAL 


Brazil: 

The  German-controlled  Brazilian  Condor  Air  Line  was  paralyzed  when 
the  Vest  India  Oil  Company  stopped  delivery  of  gasoline. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 
No  noteworthy  reports  or  decisions. 


Special  Items; 

1100:     First  joint  conference  of  the  Liaison  Staffs  of  the 

Axis  navies  at  the  German  Naval  Staff  for  the  purpose 
of  inaugurating  effective  cooperation  between  the 
Axis  navies. 

Participants : 

German:   Commander  in  Chief,  Navy 

Chief  of  Staff,  Naval  Staff 

Chief,  Operations  Division,  Naval  Staff 

Quartermaster,  Naval  Staff 

Chief,  Naval  Ordnance 

Admiral  Groos 

Chief,  Office  of  the  Commander  in  Chief,  Navy 

Assistant  Chief,  Office  of  the  Commander  in  Chief,  Navy 

Chief,  Naval  Attache  Section 

Aide  to  the  Commander  in  Chief,  Navy. 

Italian:  Rear  Admiral  Bertoldi 
Captain  de  Angelis. 

Japanese:  Vice  Admiral  Nomura 
Rear  Admiral  Abe 
Captain  Yokoi. 

The  Commander  In  Chief,  Navy  opens  the  conference  with  a  summary 
of  the  development  of  the  situation  up  to  the  present  and  em- 
phasizes the  necessity  for  close  cooperation  between  the  Axis 
navies.  Thereafter  the  Chief,  Operations  Division,  Naval  Staff 
gives  a  report. 

He  analyzes  the  over-all  strategic  situation  since  the  outbreak 
of  hostilities  between  Japan  and  the  U.S.A.,  its  implications 
for  the  warring  powers,  as  well  as  the  future  tasks  confronting 
Japanese,  Italian,  and  German  naval  warfare.  Admiral  Nomura 
then  declares  that  the  viewpoint  of  the  German  Naval  Staff  coin- 
cides entirely  with  his  own  and  that  of  the  Japanese  Admiralty 
Staff,  and  that  he  will  discuss  further  points  during  the  after- 


-171- 


9862 


17  Dec.  19^1  CONFIDENTIAL 

noon  session.   In  conclusion,  the  Commander  in  Chief,  Navy  points 
out  the  crucial  importance  of  the  present  phase  of  this  war.  He 
emphasizes  the  necessity  for  close  and  confident  cooperation  be- 
tween the  three  navies,  and  expresses  his  firm  belief  in  a  common 
victory. 

On  the  whole  the  conference  progressed  in  a  very  satisfactory  and 
dignified  manner.   It  is  gratifying  to  note  that  the  Italian  as 
well  as  the  Japanese  Liaison  Staff  seems  ready  and  eager  to  cooper- 
ate fully  and  honestly. 

(For  details  of  the  talk  by  the  Commander  in  Chief,  Navy  and  the 
report  by  the  Chief,  Operations  Division,  Naval  Staff,  see  War 
Diary,  Part  C,  Vol.  XV.) 

At  1500  Admiral  Nomura  discussed  special  points  with  the  Chief  of 
Staff,  Naval  Staff.  For  the  minutes  of  this  meeting  see  War  Diary, 
Part  C,  Vol.  XV. 


Situation  17  Dec.  19^1 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

North  Atlantic; 

Radio  monitoring  reports  that  the  CUMBERLAND  was  loca- 
ted off  Iceland  on  16  Dec.  Another  cruiser  was  located  in  ap- 
proximately 60°  N  10°  W  the  evening  of  15  Dec.   The  INDOMITABLE 
was  in  the  West  Indies  on  15  Dec.  A  South  American  press  report 
states  that  French  vessels  in  Martinique  are  under  guard  of  U.S. 
naval  vessels  in  order  to  prevent  their  delivery  to  Germany. 

South  Atlantic : 

DEVONSHIRE,  auxiliary  cruiser  CANTON,  and  destroyer 
VANSITTARD  were  located  in  the  Freetown  area  on  15  Dec.  Radio 
monitoring  located  a  British  submarine  on  5  Dec  between  23° 
and  26°  N,  17°  and  18°  W.   On  17  Dec  the  British  motor  ship  KING 
WILLIAM  reported  a  vessel  suspected  of  being  a  submarine  trap 
south  of  the  Ivory  Coast,  and  the  steamer  NAILSEA  MOOR  sent  In  a 
similar  report  300  miles  southeast  of  there.  The  vessel  in  ques- 
tion was  presumably  a  British  patrol  craft.  According  to  an 
Italian  report  a  large  U.S.  convoy  carrying  war  materiel  Is  ex- 
pected to  arrive  in  Suez  within  the  next  few  days. 

2.  Own  Situation: 

The  German  Ambassador  to  the  Vatican  reports  that  the 
Apostolic  Delegate  to  Australia  reported  the  number  of  rescued 


-172- 


9862 


17  Dec.  1941  CONFIDENTIAL 

from  the  CORMORAN  at  26l,  among  them  several  wounded.  According 
to  British  reports  so  far  received  approximately  320  men  are  sup- 
posed to  have  been  rescued, 

Radiogram  2317  advised  motor  ship  PORTLAND  of  the  recognition  sig- 
nal for  her  rendezvous  vith  Japanese  naval  forces  and  directed  her 
to  advise  radio  station  Norddeich  over  long  and  short  wave  fre- 
quencies 48  hours  before  she  plans  to  put  into  port.  Radiogram 
0137  advised  the  PORTLAND  about  the  location  of  the  Japanese  for- 
ces which  are  to  meet  her. 

Report  on  the  enemy  situation  sent  by  Radiogram  2155.  Radiogram 
1616  from  Naval  Staff,  Operations  Division  directs  Admiral, 
Prance;   Commanding  Admiral,  Submarines;   Supply  Ships  Unit, 
Branch  Office  West  (copy  to  Group  West)  to  welcome  the  returning 
crews  of  ship  "16"  and  PYTHON.  The  Commander  in  Chief,  Navy  will 
tender  the  official  welcome  to  the  crew  of  ship  "16"  in  Berlin. 
Further  details  will  be  arranged  by  the  Office  of  General  Navy  Af- 
fairs. 


II.   Situation  West  Area 
1.   5nemy  Situation; 

Nothing  to  report. 
2.-   Own  Situation: 

Atlantic  Coast; 

Forty  five  enemy  planes  raided  Brest  in  the  evening  of 
17  Dec.  The  shipyards,  power  station,  and  the  air  base  Brest 
South  were  slightly  damaged.  213  high  explosive  bombs  as  well 
as  250  to  290  flares  and  incendiary  disks  were  dropped.  The  de- 
parture of  ship  "10"  was  postponed  as  requested  by  the  responsi- 
ble authority  (Group  West,  Tr.N.). 

The  small  forces  of  the  Commander,  Air,  Atlantic  Coast  are  insuf- 
ficient to  furnish  an  escort  force  to  Group  West  for  the  depart- 
ing ship  "10"  and  at  the  same  time  conduct  long-range  reconnais- 
sance to  locate  enemy  convoys  for  the  Commanding  Admiral,  Subma- 
rines. Since  a  compromise  cannot  be  reached  between  Group  West 
and  the  Commanding  Admiral,  Submarines,  Group  West  requests  a 
ruling  giving  the  final  decision  in  similar  cases  hereafter  to 
the  Commanding  Admiral,  Group  West. 

The  Naval  Staff  decides  as  follows:  Submarine  operations  against 
convoy  HG  77  which  we  are  trying  to  locate  should  be  interfered 
with  as  little  as  possible # since  these  operations  seem  to  be  very 
promising.  However,  reconnaissance  service  for  ship  "10"  has 
priority  during  the  two  critical  days  when  the  ship  passes  the 


966  2 

-173- 


17  Dec.  1941  CONFIDENTIAL 

north-south  route.   Since  convoy  HG  77  vill  presumably  be  located 
along  the  southern  edge  of  route  "Anton",  the  aerial  reconnaissance 
service  available  most  likely  will  be  able  to  discharge  both  duties 
simultaneously  on  those  two  days.   The  Naval  Staff  recommends  that 
Group  West  consider  whether  it  would  not  be  opportune  to  postpone 
the  departure  of  ship  "10".   Such  action  might  be  advisable  for 
reasons  other  than  the  fact  that  on  22  Dec.  the  available  planes 
must  be  used  to  locate  the  enemy  convoy. 

It  is  impossible  to  delegate  to  the  Commanding  Admiral,  Group  West 
the  authority  over'  the  commitment  of  the  long-range  reconnaissance 
planes.   This  authority  must  remain  with  the  Naval  Staff,  since 
the  FW  200' s  were  transferred  to  the  West  Area  by  order  of  the 
Fuehrer  for  the  support  of  submarine  warfare. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 
Nothing  to  report. 

2.  Norway: 

Enemy  Situation: 

Radio  monitoring  reports  that  the  KENT  is  located  in 
the  area  off  the  Murmansk  coast.   The  CUMBERLAND  will  presumably 
approach  the  Murmansk  coast  from  the  Iceland  area.  At  17^0  a 
British  vessel  reported  German  naval  forces  J>0   miles  east  of 
Svyatoi  Noss. 

Own  Situation: 

At  1946  the  8th  Destroyer  Flotilla  reported  a  battle 
engagement  with  two  enemy  destroyers  In  the  area  J>0   miles  east 
of  Svyatoi  Noss.  By  20  Dec.  destroyer  Z  "26"  will  presumably 
again  be  ready  for  duty. 

Our  convoys  proceeded  according  to  plan  without  enemy  interfer- 
ence. 

In  reply  to  the  inquiry  from  the  Naval  Staff  (see  War  Diary 
16  Dec.)  Group  North  reports  that  it  plans  to  send  the  5th  Mine- 
sweeper Flotilla  consisting  of  four  vessels  to  Norway  toward  the 
end  of  January.   However,  this  flotilla  will  be  transferred  only 
if  such  action  does  not  interfere  with  the  operations  of  the  Com- 
mander, Mine  Units,  North,  and  if  no  additional  escort  operations 
make  it  necessary  for  the  flotilla  to  Remain  In  the  East  Area. 
Group  North  is  also  trying  to  maintain  the  present  number  of  es- 
cort and  minesweeper  flotillas  under  the  command  of  the  Command- 
ing Admiral,  Norway.   However,  it  will  be  possible  to  transfer 


-174-  9862 


17  Dec.    1941  CONFIDENTIAL 

« 

additional  vessels  to  the  Commanding  Admiral,  Norway  only  when 
the  Commander,  Mine  Units,  North  has  completed  his  operations  in 
the  East  Area  (see  Radiogram  1233). 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea; 
Nothing  to  report. 


V.   Submarine  Warfare 

1.  Enemy  Situation; 

The  escort  vessel  STORK  sighted  German  submarines,  evi- 
dently in  the  area  west  of  Gibraltar. 

2.  Own  Situation; 

Contact  with  enemy  convoy  HG  77  was  re-established. 
Reports  so  far  received  state  that  one  steamer  was  torpedoed. 
See  War  Diary,  Part  B,  Vol.  IV  for  a  detailed  report  on  the  sit- 
uation. 

See  War  Diary,  Part  C,  Vol.  IV  for  deliberations  by  the  Chief, 
Operations  Section,  Naval  Staff  on  the  tasks  and  possibilities 
of  submarine  warfare  in  the  Atlantic. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

Aerial  reconnaissance  over  the  northern  North  Sea  and 
the  east  coast  sighted  nothing  of  importance. 

During  the  evening,  twenty  seven  planes  flew  combat  missions 
over  Newcastle  and  ten  planes  flew  missions  against  shipping. 

2.  Mediterranean  Theater; 

The  26th  Bomber  Squadron,  Second  Air  Corps  attacked  an 
enemy  force  located  by  our  reconnaissance  planes.  At  13^9  a 
heavy  cruiser  was  hit  with  two  aerial  torpedoes  which  exploded 
on  a  level  with  the  military  mast.  A  jet  of  flames  was  observed 
and  the  cruiser  was  seen  slowing  down.  During  the  second  attack 
at  1435  a  cruiser  or  destroyer  was  hit  by  an  aerial  torpedo  and 
a  high  jet  of  flames  was  observed.  Later  on  followed  a  third 
attack  by  Stuka  planes,  during  which  heaviest  type  bombs  exploded 


9862 

175- 


17  Dec.  19^1  CONFIDENTIAL 

close  to  the  gunwale  0f  a  light  cruiser,  a  heavy  cruiser,  and  a 
destroyer.  Further  observation  was  made  impossible  by  effective 
anti-aircraft  artillery. 

3.   Eastern  Front: 

An  analysis  of  the  reports  has  not  yet  been  received. 


VII.  Warfare  in  the  Mediterranean 

1.   Enemy  Situation; 

Western  Mediterranean: 

The  British  submarine  URSULA  is  supposed  to  leave  the 
Mediterranean  for  home  on  26  Dec.  A  Spanish  report  states  that 
an  eastbound  convoy  was  sighted  off  Cape  Tres  Forcas  at  0400. 
Toward  midnight,  the  British  force  "MSOW"  was  located  in  the  area 
east  of  -Gibraltar. 

Central  and  Eastern  Mediterranean: 

The  enemy  task  force  of  one  battleship,  two  cruisers, 
and  eight  destroyers  which  was  reported  north  of  the  Gulf  of  Sol- 
ium on  16  Dec.  was  again  located  by  German  reconnaissance  planes 
at  0912  in  20°,  170  miles  from  Benghazi.   Our  planes  tracked  the 
enemy  task  force  all  day  and  reported  its  location  on  westerly 
to  southerly  course  in  the  sea  area  northwest  of  Benghazi.  Dur- 
ing the  morning,  a  smaller  enemy  force  of  one  cruiser,  three  de- 
stroyers and  one  steamer  was  reported  northeast  of  the  Gulf  of 
Solium,  and  another  small  enemy  force  of  two  cruisers  and  one 
merchantman  was  reported  east  of  the  Gulf  of  Solium.  All  these 
vessels  were  probably  part  of  one  single  force.  During  the  morn- 
ing, Italian  reconnaissance  planes  located  two  cruisers  and  sev- 
eral destroyers  in  the  sea  area  off  Alexandria  and  two  battle- 
ships in  the  harbor  of  Alexandria. 

During  the  morning,  two  cruisers  and  ten  destroyers  on  a  south- 
erly course  were  sighted  in  the  central  Mediterranean.  Aerial 
reconnaissance  reveals  that  no  cruisers  are  lying  in  Malta. 

Our  radio  monitoring  service  reports  that  British  planes  give  a 
continuous  account  of  the  movements  of  our  supply  convoy  which 
departed  for  North  Africa  on  16  Dec.  The  planes  were  ordered 
to  attack  British  vessels  which  were  mistaken  for  enemy  forces. 
Intercepted  enemy  reports  and  courses  steered  by  enemy  naval 
forces  show  that  the  enemy  must  have  been  fully  Informed  of  the 
extent  and  movements  of  the  Italian  forces. 

A  report  from  the  British  Admiralty  states  that  the  large  Italian 
submarine  ADMIRAL  CARRACIOLA  was  sunk  by  destroyer  FARANDEL  in 
the  central  Mediterranean.   The  submarine  was  en  route  from  Bardia 


9862 

-176- 


17  Dec.  19^1  CONFIDENTIAL 

to  Italy.  Aboard  were  twenty  Italian  officers,  among  them  the 
Chief  of  Engineers  of  the  Italian  Army,  General  Lami.  Fifty  three 
survivors  were  rescued.  General  Lami  was  not  among  the  survivors. 

i 

2.  Own  Situation; 

The  planned  operation  of  the  3rd  PT  Flotilla  was  cancel- 
led because  of  weather  conditions. 

3.  Situation  Italy; 

The  Italian  convoy  of  four  steamers  left  Taranto  on 
16  Dec.  The  DUILIO  group,  consisting  of  the  battleship  DUILIO, 
three  light  cruisers,  and  four  destroyers,  closely  guards  the 
convoy.  Three  battleships,  LITTORIO,  CESARE,  and  DORIA  and  the 
heavy  cruisers  GORIZIA  and  TARENT  as  well  as  ten  destroyers  are 
at  sea  as  additional  support. 

At  1500  the  LITTORIO  group  was  located  approximately  50  miles 
north  of  the  main  enemy  force,  while  the  DUILIO  group  with  the 
convoy  was  about  55  miles  northwest  of  it.  German  and  Italian 
reconnaissance  planes  reported  exact  data  on  the  strength  and 
movements  of  the  enemy  force  to  the  Italian  Chief  of  the  Fleet. 
He  realized  that  the  enemy  force  was  moving  in  the  direction  of 
that  area  which  the  convoy  had  to  reach  at  dusk.  In  the  after- 
noon, the  Italian  Admiralty  gave  permission  to  the  Chief  of  the 
Fleet  to  steer  whatever  course  he  deems  best,  and  to  resume  the 
course  to  the  ports  of  destination  in  the  morning  of  18  Dec 
Thereupon  the  convoy  was  ordered  to  steer  a  course  to  32°  30'  N 
15°  45'  E  after  dark,  after  having  temporarily  reversed  course. 

No  reports  of  a  battle  engagement  were  received  during  17  Dec. 

4.  Transport  of  Supplies  to  North  Africa; 

See  Situation  Italy  for  the  transport  operation  of  the 
52nd  Squadron.  The  squadron  consists  of  the  steamer  ANKARA, 
which  is  to  transport  supplies  to  Benghazi,  and  the  steamers 
NAPOLI,  VICTOR  PISANI,  and  M0NGINEVR0  which  will  transport  sup- 
plies to  Tripoli. 

One  destroyer  and  one  transport  submarine  arrived  in  Benghazi 
on  16  Dec.  The  transport  submarine  left  in  the  evening  for 
Bardia  with  foodstuffs.  Two  more  transport  submarines  are  en 
route  to  North  Africa.  One  naval  barge  left  Benghazi  in  the 
afternoon  of  16  Dec.  bound  for  Derna  and  another  left  Derna  for 
Bardia  that  day. 

5.  Area  Naval  Group  South; 
Aegean  Sea; 

Enemy  Situation; 
Nothing  to  report. 


-177-  9862 


17  Dec.  194l  CONFIDENTIAL 

Ovn  Situation; 

On  16  Dec.  the  Italian  torpedo  boat  ORIONE  sighted  and 
rammed  a  submarine  vhich  was  held  to  be  of  enemy  origin.  The 
ramming  took  place  at  2230,  approximately  15  miles  vest  of  Crete. 
The  ORIONE  arrived  in  Suda  heavily  damaged.  Reports  from  Group 
South  and  the  German  Naval  Command,  Italy  state  that  it  is  feared 
that  the  rammed  submarine  may  have  been  the  German  U  "557"  which 
was  on  her  way  back  to  Salamis.  The  submarine  was  placed  under 
the  command  of  the  2?rd  Submarine  Flotilla  on  15  Dec.  U  "557" 
did  not  comply  with  the  request  to  report  her  position.  The  ram- 
ming occurred  in  the  zone  in  which  a  submarine  chase  must  be  pro- 
hibited now  and  then. 

Admiral,  Aegean  and  the  2j5rd  Submarine  Flotilla  have  instituted 
aerial  reconnaissance  and  rescue  operations. 

Since  the  transfer  of  the  "Siena  Division"  to  Crete  has  been  com- 
pleted, the  German  Naval  Command,  Italy  requests  Admiral,  Aegean; 
Group  South;   the  German  General  at  Headquarters,  Italian  Armed 
Forces;  and  the  Naval  Staff  to  investigate  whether  it  might  be 
possible  to  postpone  further  transport  operations  so  that  the 
ships  and  escort  forces  can  be  used  for  carrying  supplies  to  North 
Africa  in  view  of  the  critical  situation  there.   (See  Radiogram 
1300.) 

The  Italians  plan  to  erect  a  temporary  base,  a  "Base  Passegiara", 
in  Suda.  Admiral,  Aegean  and  Group  South  inform  the  Armed  Forces 
Commander,  Southeast  that  they  are  opposed  to  this  Italian  at-- 
tempt  to  gain  a  footing  in  Suda.  See  War  Diary,  Part  C,  Vol.  XIV 
for  a  copy  of  the  corresponding  teletype  from  the  Admiral,  Aegean 
and  Group  South.  Entry  made  in  the  Diary  as  per  l/Skl  29214/41 
Gkdos. 

Black  Sea; 

Enemy  Situation; 

The  merchantmen  and  destroyers  which  were  sighted  90 
miles  south  of  Yalta  on  16  Dec.  were  proceeding  eastward  at  full 
speed.  An  SOS  signal  from  a  Russian  vessel,  presumably  a  mine- 
sweeper, was  intercepted  in  the  area. 

Own  Situation; 

The  supply  transport  operation  "Urlaubstoern"  was  ex- 
ecuted according  to  plan.  The  three  steamers  which  took  part  in 
the  operation  anchored  east  of  Ochakov.  The  convoy  broke 
through  a  new  enemy  mine  field. 

Otherwise  nothing  to  report. 


9862 

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17  Dec.  1941  CONFIDENTIAL 

VIII.  Situation  East  Asia 

1.  Enemy  Situation; 

The  radio  monitoring  service  reports  that  the  following 
vessels  are  lying  in  Singapore ;  five  cruisers,  four  destroyers, 
and  six  submarines. 

In  Colombo  are:  REVENGE,  HERMES,  and  EAGLE. 

In  Australia  are:  five  cruisers. 

A  report  from  the  Army  General  Staff  states  that  the  convoy  which 
left  England  for  Egypt  during  the  last  days  of  September  was  on 
26  Nov.  approximately  350  miles  west  of  the  northern  point  of 
Sumatra.  Half  a  division  of  troops  and  the  tanks  which  were  a- 
board  the  convoy  have  meanwhile  reached  Singapore.  A  further, 
but  unconfirmed,  report  states  that  a  group  of  naval  vessels 
carrying  troops  as  replacements  from  India  to  Libya  is  now  pro- 
ceeding in  the  direction  of  Rangoon.  A  report  from  the  U.S.  War 
Department  states  that  the  islands  of  Guam  and  Wake  are  so  far 
successfully  resisting  the  Japanese  attacks.  U.S.  Army  bombers 
successfully  attacked  Japanese  troop  transports  off  Luzon. 

2.  Situation  Japan: 

The  Japanese  landing  on  Borneo  took  place  near  Miri 
(oil  region) .  Japanese  reports  state  that  the  Philippine  Island 
of  Cebu  has  been  occupied.  Press  reports  state  that  five  British 
torpedo  boats  and  one  gun  boat  were  sunk  in  the  harbor  of  Hong 
Kong. 


IX.  Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

Our  positions  in  the  Crimea  were  shelled  by  enemy  naval 
artillery.  Only  little  fighting  on  the  1st  Panzer  Army  sector. 

Nothing  to  report  from  the  17th  and  6th  Army  sectors. 

Central  Army  Group: 

The  enemy  break-through  between  Livny  and  Verkhovie  was 
stopped.  Strong  enemy  troop  contingents  are  being  brought  up 
from  Yelets.  At  the  4th  Army  sector,  the  withdrawing  Army  Corps 
are  fighting  rear  guard  battles.   It  has  been  determined  that  the 
enemy  is  bringing  up  troops  from  Tula.  They  are  advancing  in 
the  direction  of  Aleksin  and  Dubna.  No  noteworthy  fighting  on 
the  9th  Army  sector. 


-179- 


17  Dec.  19*U  CONFIDENTIAL 

Northern  Army  Group; 

Enemy  attacks  on  "both  aides  of  Volkhovstroy  were  re- 
pulsed. Much  artillery  activity  in  the  other  sectors. 

2.   Finnish  and  Norvegian  Front: 

Enemy  attacks  along  the  Svir  front  and  near  Oshta  as 
well  as  on  the  sector  of  the  III  Finnish  Army  Corps  were  repulsed. 

5.   North  Africa: 

So  far  the  enemy  followed  the  withdrawing  units  of  the 
Panzer  Group  only  slowly.   Our  air  reconnaissance  determined  that 
the  enemy  is  maneuvering  to  pass  our  forces  to  the  southwest  in 
the  direction  of  Agedabia.  This  necessitates  a  withdrawal  of  the 
Panzer  Group  to  the  Agedabia-Benghazi  zone. 

An  unlikely  report  from  the  Italian  Naval  Command  received  on 
16  Dec.  states  that  four  heavy  cruisers,  nineteen  destroyers, 
and  thirty  three  steamers  were  located  in  the  western  Mediterranean 
on  a  westerly  course.  A  landing  operation  in  the  Gulf  of  Sidra  is 
considered  possible. 


*****#**#•***********«*** 


9862 

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CONFIDENTIAL 
18  Dec.  19*U 

Items  of  Political  Importance 

Great  Britain t 

The  Deputy  Foreign  Minister  declared  in  the  House  of  Commons  that 
China  is  in  every  sense  an  ally  of  Britain.   Therefore  she  will 
of  course  participate  in  Inter-Allied  conferences.   He  stated 
that  the  reports  which  declare  that  Mozambique  and  Angola  have 
been  promised  to  the  Union  of  South  Africa  are  enemy  propaganda 
rumors.  Various  reports  indicate  that  the  newly  created  Allied 
War  Council  will  formulate  basic  plans  for  future  operations. 
The  most  important  decision  to  be  made  is  against  which  of  the 
two,  Germany  or  Japan,  an  all-out  attack  is  to  be  directed  first. 
The  fact  that  the  governments  of  Australia  and  New  Zealand  left 
no  room  for  doubt  that  they  expect  substantial  American  and  Brit- 
ish support,  will  certainly  influence  the  final  decision.   The 
fact  that  American  public  opinion  holds  Japan  to  be  the  foremost 
enemy  will  also  have  to  be  taken  into  consideration.  Decisive 
importance  is  ascribed  to  the  attitude  of  the  Soviet  Union,  which 
considers  the  defeat  of  Germany  to  be  the  main  task. 

Other  reasons  besides  those  cited  above  may  deter- 
mine the  outcome  of  the  Allied  War  Council  confer- 
ences. The  British  point  of  view  is  the  most  ob- 
vious one.  Britain  will  never  abandon  her  posi- 
tion in  the  Far  East  without  a  fight.  She  is  de- 
termined to  exert  her  utmost  efforts  to  defend 
Singapore. 

The  Food  Minister  stated  that  the  new  situation  would  not  necessi- 
tate an  immediate  reduction  of  the  food  rations,  since  the  Pacific 
war  has  long  been  anticipated.  However,  next  year's  clothing 
ration  would  have  to  be  curtailed. 

War  insurance  premiums  on  cargoes  between  Britain  and  other  con- 
tinents were  substantially  increased  on  17  Dec.   Only  the  pre- 
miums on  shipping  between  Britain  and  the  east  coast  of  South 
America  have  remained  unchanged. 

Portugal ; 

The  Council  of  Ministers  conferred  on  the  serious  events  which 
transpired  on  Timor  Island  in  the  nature  of  the  occupation  of  the 
island  by  Australian  and  Dutch  troops.  The  report  that  the  Japa- 
nese occupied  Macao  is  officially  denied. 

The  occupation  of  Timor  might  possibly  establish 
a  precedent  for  the  occupation  of  other  Portuguese 
islands  and  colonies,  primarily  the  Azores.   In 
this  respect  it  is  fortunate  that  it  was  not  Japan 
who  occupied  Timor. 


9862 

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18  Dec.    19*11  CONFIDENTIAL 

U.S.A.: 

An  official  report  states  that  Admiral  Klmmel  was  relieved  of  the 
command  of  the  Pacific  Fleet.  A  committee  has  been  formed  to  In- 
vestigate just  what  happened  during  the  Japanese  attack  on  Pearl 
Harbor.  A  Reuter  dispatch  states  that  American  technicians  have 
arrived  in  Eritrea  in  order  to  enlarge  the  naval  base  at  Massawa 
and  that  more  military  personnel  and  civilian  workers  are  en  route, 
They  will  erect  factories,  assembly  plants,  and  repair  shops.   The 
administration  of  the  colony  is  to  remain  under  British  control. 

Argentina; 

Concerning  the  recurrent  reports  that  Britain  will  cede  the  Falk- 
land Islands  to  the  U.S.A.,  the  Argentine  Foreign  Minister  de- 
clared that  there  can  be  no  question  of  ceding  the  islands  to  any 
nation  but  Argentina. 

Uruguay ; 

The  Government  resolved  to  consider  the  U.S.  a  nonbelligerent  in 
the  war  against  Japan  and  all  other  Axis  Powers. 

China: 

The  British  General,  Denys,  has  been  named  Plenipotentiary  to  the 
Chungking  Government.  He  is  to  organize  joint  military  operation 
by  British  and  American  armed  forces. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

I.  The  Chief,  Naval  Staff,  Quartermaster  Division  reports  that 
measures  are  being  considered  jointly  with  the  Naval  Construction 
Division  and  the  representative  of  the  Submarine  Branch  on  the 
Naval  Staff  to  improve  the  situation  now  prevailing  in  regard  to 
submarine  construction.  By  cutting  the  number  of  new  submarines 
to  be  built  down  to  twenty,  the  congestion  of  repair  facilities 
and  shortage  of  personnel  would  be  relieved  considerably,  the 
latter  particularly  in  regard  to  officers.   The  Chief,  Naval  Staff, 
Quartermaster  Division  further  reports  on  the  curtailment  of  the 
monthly  motor  fuel  oil  quota.  Beginning  1  Feb.  19^2  this  quota 
will  be  reduced  from  40,000  tons  to  32,000  tons  per  month.   The 
report  also  covers  the  consequences  of  the  fuel  oil  quota  cut- 
back which  is  already  in  force. 

The  Chief,  Naval  Staff  approves  the  proposal  of  the  Naval  Staff, 
Quartermaster  Division  that  the  steamers  POTSDAM  and  GNEISENAU, 
lying  in  Hamburg,  be  used  as  floating  living  quarters  for  the 
crews  of  eleven  submarines  undergoing  repairs  in  the  Hamburg  ship- 
yard s . 

II.  The  Naval  Staff,  Political  and  Propaganda  Section  reports 
that  the  French  Admiralty  Staff  has  forwarded  thanks  for  the 


9662 

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18  Dec.    19^1  CONFIDENTIAL 

rescue  of  French  shipwrecked  sailors.  The  report  also  states  that 
it  is  impossible  for  steamer  WARTENFELS  to  depart  from  Diego 
Suarez  (Madagascar)  since  the  coal  destined  for  this  ship  was  car- 
ried by  the  French  convoy  which  was  taken  as  a  prize  by  British 
naval  forces  some  time  ago.  Furthermore,  the  report  covers  the 
discussions  of  the  Armistice  Commission  concerning  the  transfer  of 
French  ships  to  Germany  and  Italy.  The  French  are  objecting  stren- 
uously to  any  such  move  in  view  of  their  own  needs  for  all  vessels, 
and  particularly  in  view  of  British  measures  to  prevent  French 
ships  from  falling  into  German  or  Italian  hands.  The  tonnage  of- 
fered to  us  by  the  French  is  considerably  lower  than  what  we  de- 
manded, and  the  French  are  asking  fuel  oil  in  exchange.  The  Naval 
Staff,  Political  and  Propaganda  Section  also  reports  on  the  prog- 
ress of  the  German- Spanish  conferences  concerning  Spanish  shipping 
to  enemy  countries. 


Special  Items; 

I.  Considerations  regarding  the  destruction  of  Benghazi  and  Derna: 

The  development  of  the  situation  in  North  Africa  demands  that  we 
analyze  the  necessity  for  destroying  Benghazi  and  Derna.  After 
presentation  of  the  pros  and  cons  for  destruction,  the  Commanding 
Admiral,  German  Naval  Command,  Italy  closes  as  follows:   the  advan- 
tages and  disadvantages  of  destroying  the  two  cities  were  analyzed 
and  an  estimate  was  made  of  the  probable  outcome  of  the  fighting 
in  North  Africa  during  the  next  two  months.  Both  factors  lead  to 
the  conclusion  that  there  is  immediate  danger  of  a  further  British 
advance  into  Tripolitania,  while  chances  are  slight  that  the  situ- 
ation will  develop  in  such  a  way   as   to  permit  us  to  retake 
Cyrenaica  at  a  later  date.   It  is  therefore  proposed  that  immedi- 
ate steps  be  taken  to  destroy  Benghazi  and  Derna  completely,  con- 
centrating on  port  installations  and  fuel  storage  facilities  in 
doing  so.  A  final  decision  in  this  matter  can  be  made  only  by 
highest  authority.  See  War  Diary,  Part  C,  Vol.  XIV  for  the  tele- 
type from  the  Commanding  Admiral,  Naval  Command,  Italy,  as  per 
Commander  in  Chief,  Navy,  Op  2135A*  Gkdos.  Chefs. 

The  Naval  Staff  endorses  the  view  of  the  Commanding  Admiral,  Naval 
Command,  Italy  and  forwards  it  to  the  Navy  Liaison  Officer  at  the 
Armed  Forces  High  Command  for  his  personal  information.  The  Com- 
manding Admiral,  Naval  Command,  Italy  Is  notified  of  this  proce- 
dure. The  Naval  Staff  presumes  that  the  Commander  in  Chief,  South 
will  see  to  It  that  the  Armed  Forces  High  Command  makes  a  deci- 
sion. 

II.  Turkish-British  Cooperation: 

The  Naval  Staff  reviews  this  question  thoroughly.  Evidence  of 
Anglo-Turkish  cooperation  was  obtained  mostly  by  decoding  the 
radio  reports  from  the  British  Naval  Attache  at  Istanbul  to  the 
British  Admiralty.   It  is  the  opinion  of  the  Naval  Staff  that 
the  over-all  picture  of  the  compiled  material  warrants  a  further 


9862 

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18  Dec.  1941  CONFIDENTIAL 

careful  Investigation  of  the  internal  and  external  political  for- 
ces influencing  Turkey's  attitude,  since  it  Is  not  at  all  certain 
that  Turkey  vill  indefinitely  retain  her  present  neutral  status 
under  constant  enemy  pressure.  See  War  Diary,  Part  B,  Vol.  V  for 
the  text  of  the  reviev  given  by  the  Naval  Staff,  as  per  l/Skl  Ic 
28698/41  Gkdos. 


Situation  18  Dec.  1941 
I.   War  in  Foreign  Waters 
1.   Enemy  Situation: 
North  Atlantic: 


Bermuda . 


On  12  Dec.  a  British  vessel  departed  from  Halifax  for 
Pacific  Ocean: 


The  U.S.  radio  station  at  Palo  Alto  warned  U.S.  mer- 
chantmen about  an  enemy  submarine  which  was  located  270  miles 
southwest  of  San  Diego  on  17  Dec. 

2.   Own  Situation: 

Radiogram  1616  informs  the  Armed  Forces  High  Command, 
Operations  Staff  of  the  receipt  of  a  top  secret  Japanese,  communi- 
cation to  the  effect  that  the  entire  Pacific  has  been  declared  a 
war  zone  in  which  ships  will  be  attacked  without  warning,  and 
that  the  Japanese  Navy  does  not  want  our  ships  to  carry  special 
Identification  markings. 

Radiogram  2009  advises  all  ships  in  foreign  waters  which  codes 
are  to  be  used  In  communications. 

Reports  on  the  enemy  situation  sent  by  Radiograms  0125,  2114,  and 
2202. 


II.   Situation  West  Area 


1.   Enemy  Situation: 


During  the  day  lively  enemy  air  activity  over  the  Atlan- 
tic coast.  A  report  from  a  foreign  agent  states  that  U.S.  trans- 
port vessels  arrived  in  North  Ireland  ports  between  1  and  4  Dec, 
bringing  technicians,  workers,  and  ground  personnel  as  well  as 
machinery  and  tools  for  the  construction  of  U.S.  air  bases. 


9862 

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18  Dec.  19^1  CONFIDENTIAL 

The  aircraft  carrier  ALBAMALE  (U.S.  seaplane  tender  ALBEMARLE? 
Tr.N.)  unloaded  several  planes  and  approximately  ninety  officers. 

For  details  see  Radiogram  1212. 

2.   Ovn  Situation: 

Atlantic  Coast: 

A  "bomb  struck  the  dock  near  the  GNEISENAU  during  enemy 
air  raids  from  1330  to  1^45  and  from  1930  to  2041.  Her  outer  hull 
vas  damaged  starboard  aft  and  sprung  a  small  leak.  Two  men  were 
killed..  Nothing  happened  to  the  SCHARNHORST,  but  the  dock  cais- 
son was  damaged.  No  damage  was  done  to  the  PRINZ  EUGEN  either. 
Numerous  bombs  landed  in  the  immediate  vicinity  of  the  vessels  and 
the  harbor  area  in  general,  where  they  caused  slight  damage  in 
spots. 

On  the  basis  of  these  air  raids,  Commanding  Admiral,  Battleships 
once  more  emphasizes  the  urgent  need  for  reinforcing  the  present 
anti-aircraft  artillery  and  pursuit  plane  protection  of  Brest. 
Temporary  measures  to  improve  facilities  for  night  pursuit  planes 
must  be  speeded  up.   (See  Radiogram  2215.) 

Since  it  was  to  be  expected  that  latest  develop- 
ments would  result  in  a  grave  threat  to  the  vessels 
in  Brest,  the  Naval  Staff  had  already  ordered  the 
Naval  Staff,  Quartermaster  Division  to  investigate 
what  additional  measures  can  possibly  be  taken  to 
defend  Brest.  Detailed  data  will  follow. 

Channel  Coast: 

Nothing  to  report. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation: 

;}ome  enemy  air  activity.  East  of  Great  Yarmouth,  air 
reconnaissance  sighted  a  convoy  of  ten  steamers  on  a  northerly 
course. 

Own  Situation: 

Nothing  to  report. 

2.  Norway : 

Enemy  Situation: 
Nothing  to  report. 


9862 

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18  Dec.    19^1  CONFIDENTIAL 

Ovn  Situation: 

At  1400  the  8th  Destroyer  Flotilla  reports  passing  Fugloe 
en  route  to  Tromsoe.  No  report  has  yet  "been  received  on  the  battle 
engagement  with  the  enemy  destroyer  on  17  Dec.   Subchaser  "121V1 
reports  an  artillery  duel  with  an  enemy  submarine  which  was  tracked 
down  in  Jkjk   AC. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 

The  Naval  Commander,  Baltic  Countries  reports  that  an  icebreaker 
and  a  10,000  ton  auxiliary  vessel  crossed  the  TMB  mine  barrage 
in  the  shipping  channel  from  Leningrad  to  Peterhof  without  sus- 
taining any  damage.   (See  Radiogram  2100.)  Otherwise  nothing  to 
report. 


V.   Submarine  Warfare 

1.  Enemy  Situation: 

Radio  monitoring  reports  that  escort  vessel  STORK 
sighted  a  surfaced  submarine  about  230  miles  north- northeast  of 
Madeira.   The  STORK,  the  destroyer  ARROW,  and  the  escort  vessel 
DEANKLY  were  part  of  a  convoy.   The  British  Admiralty  announced 
that  a  German  submarine  sank  the  cruiser  DUNEDIN  in  the  Atlantic. 
In  a  detailed  critique  on  the  sinking  of  the  French  vessel  ST 
DENIS  and  the  Spanish  vessel  BADAL0NA,  the  British  Admiralty  tries 
to  prove  that  only  a  German  submarine  could  have  been  responsible. 
A  press  report  states  that  the  Portuguese  steamer  CASSEQUEL  was 
sunk  by  a  submarine  200  miles  off  Lisbon.  Radio  monitoring  inter- 
cepted a  report  from  reconnaissance  planes  stating  that  two  sub- 
marines were  sighted  in  the  Gibraltar  area. 

2.  Own  Situation: 

Contact  with  convoy  HG  77  was  lost  several  times  but 
could  always  be  re-established.  A  submarine  in  the  eastern  Med- 
iterranean reported  that  it  scored  three  hits  on  a  cruiser  of 
the  LEANDER  class,  but  did  not  observe  whether  it  sank.   However, 
the  report  states  that  this  may  be  assumed  certain.   There  are  no 
new  reports  as  to  the  whereabouts  of  submarine  U  "557"*  which 
must  be  presumed  lost  after  being  rammed  by  the  Italian  torpedo 
boat  0RI0NE.  A  search  for  survivors  at  the  scene  of  the  acci- 
dent was  unsuccessful.  For  further  report  on  the  situation  see 
War  Diary,  Part  B,  Vol.  IV. 


9662 
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18  Dec.    19^1  CONFIDENTIAL 

VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

Our  regular  daylight  air  missions  in  the  West  Area  shot 
down  13  enemy  planes.  See  Situation  West  Area  for  details  of  the 
enemy  air  raid  on  Brest.  Armed  reconnaissance  reports  that 
Group  1  of  the  26th  Bomber  Wing  damaged  a  steamer  of  2,000  BRT. 

2.  Mediterranean  Theater; 

A  report  was  received  giving  the  result  of  the  Stuka 
attack  on  a  British  naval  force  on  17  Dec   It  states  that  one 
destroyer  was  damaged.  No  further  results  were  observed.   On 
18  Dec,  an  Italian  plane  made  a  torpedo  attack  on  a  cruiser  35 
miles  southeast  of  Malta  and  reported  scoring  one  hit.  For  re- 
ports of  aerial  reconnaissance  see  Situation  Mediterranean. 

3.  Eastern  Front; 

Slight  air  activity  in  support  of  Army  operations.  For 
observations  made  by  aerial  reconnaissance  see  Enemy  Situation, 
Black  Sea. 


VIII.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation; 
Western  Mediterranean: 

A  normal  number  of  vessels  are  lying  in  Gibraltar. 

Central  and  Eastern  Mediterranean: 

Contact  with  the  enemy  task  force  was  lost  on  17  Dec.  at 
1715  in  330°,  85  miles  off  Benghazi.  On  17  Dec.  at  1815,  an 
Italian  submarine  sighted  the  Malta  Group  4o  miles  south  of  Malta. 
On  18  Dec.  radio  monitoring  intercepted  reports  from  enemy  planes, 
giving  data  and  positions  of  the  Italian  convoy  and  the  two  Ital- 
ian task  forces.   In  the  morning,  German  air  reconnaissance  spot- 
ted a  cruiser,  two  steamers,  and  five  destroyers  which  were 
steaming  westward  65  miles  south  of  Malta.   Italian  air  reconnais- 
sance later  spotted  the  enemy  force  30  miles  south  of  Malta  and 
reported  its  strength  as  two  heavy  cruisers,  one  light  cruiser, 
several  destroyers,  and  three  steamers.  At  0928,  radio  monitor- 
ing intercepted  a  report  from  the  British  task  forco  which  had  en- 
gaged the  main  Italian  naval  force  in  battle  on  17  Dec.  at  17^5, 
stating  that  it  was  under  air  attack. 

2.  Situation  Italy: 

The  enemy  naval  force  south  of  Malta  was  attacked  by 
Italian  torpedo  planes  which  allegedly  scored  hits  on  a  cruiser 


-187- 


18  Dec.  19^1  CONFIDENTIAL 

(see  Aerial  Warfare,  Mediterranean  Theater).  The  Italian  convoy- 
is  proceeding  to  Tripoli  as  planned,  closely  guarded  hy  the 
DUILIO  and  LITTORIO  task  forces.   In  compliance  with  orders, 
steamer  ANKARA  left  the  convoy  at  1300  in  33°  latitude  and  pro- 
ceeded to  Benghazi.  The  danger  of  enemy  air  raids  kept  the  main 
convoy  from  putting  into  Tripoli.  An  enemy  air  raid  is  said  to 
have  inflicted  slight  damage  on  the  steamer  NAPOLI  which  was 
travelling  in  the  convoy.  Two  Italian  destroyers  rammed  each 
other  during  the  night  of  17  Dec. 

Reports  stating  that  steamers  on  a  northerly  course  were  sighted 
south  of  Malta  lead  to  the  conclusion  that  the  mission  of  the 
enemy  task  force  may  have  been  to  safeguard  the  east-west  pas- 
sage of  British  steamers,  and  not  to  attack  the  LITTORIO  task 
force  and  the  Italian  convoy.  The  main  Italian  naval  force  turned 
hack  after  the  steamer  ANKARA  left  the  convoy.  No  details  on  the 
"battle  engagement  with  the  enemy  on  17  Dec.  have  as  yet  been  re- 
ceived. 

The  conjecture  of  the  Italian  Naval  Command  as  to  the  mission  of 
the  enemy  naval  force  allegedly  consisting  of  four  battleships 
and  thirty  three  steamers  [see  War  Diary  17  Dec,  Army  Situation), 
is  not  considered  likely  by  the  Admiral,  German  Naval  Command, 
Italy.  He  does  not  believe  that  the  enemy  will  try  to  land  in 
the  Gulf  of  Sidra,  since  chances  for  the  success  of  such  an  oper- 
ation are  slight,  and  recommends  that  the  estimate  of  the  naval 
situation  by  the  Italian  Admiral  in  Libya  be  regarded  with  corres- 
ponding caution. 

The  Naval  Staff  agrees  with  this  critique. 

3.  Transport  of  Supplies  to  North  Africa: 

A  transport  submarine  arrived  at  Benghazi  on  18  Dec. 
Otherwise  nothing  to  report. 

4.  Area  Naval  Group  South; 
Aegean  Sea; 

Nothing  to  report. 

Black  Sea: 

Enemy  Situation; 

Air  reconnaissance  reports  sighting  a  battleship  cam- 
ouflaged with  trees  and  houses  in  the  harbor  of  Sevastopol.   In 
addition,  from  60  to  80  ships  of  all  types  are  in  the  harbor, 
mostly  small  vessels.  Unescorted  vessels  were  seen  entering  and 
leaving  Sevastopol. 

Own  Situation: 

Transport  operations  proceeding  according  to  plan. 
Otherwise  nothing  to  report. 


-188- 


18  Dec.  1941  CONFIDENTIAL 

IX.   Situation  East  Asia 

1«   Enemy  Situation; 

Radio  London  states  that  the  Dutch  Fleet  sank  another 
Japanese  tanker  and  a  Japanese  steamer  besides  the  four  transport 
vessels  previously  sunk.  Radio  Daventry  reports  that  Japanese 
planes  raided  Rangoon,  hut  this  is  officially  denied  in  Rangoon 
and  in  New  Delhi.  Radio  Daventry  also  reports  that  the  Austra- 
lians are  evacuating  Port  Darwin  and  that  Penang  is  seriously 
threatened . 

2.   Ovn  Situation: 

On  the  basis  of  the  Thai-Japanese  military  pact,  Thai- 
land takes  charge  of  the  defense  of  her  northwest  frontier  with 
Burma.  The  German  Naval  Attache  at  Tokyo  forwards  the  following 
message  from  the  Japanese  Admiralty  Staff: 

1.  Intelligence  reports  from  Hawaii  reveal  that  a  fourth  U.S. 
battleship  and  the  target  vessel  UTAH  were  sunk.   On  the  damaged 
vessels  most  of  the  superstructures  were  destroyed. 

2.  Five  midget  submarines  of  40  tons,  with  three-man  crews, 
and  two  torpedoes  each  were  also  used  in  the  attack  on  Pearl  Har- 
bor. 

3.  Johnston  Island  and  Baker  Island  were  shelled  by  submarines. 
Greatest  optimism  prevails  concerning  all  operations. 

See  War  Diary,  Part  C,  Vol.  XV  for  a  compilation  of  Japanese  a- 
chievements  up  to  this  time. 

According  to  a  message  from  Admiral  Nagano,  transmitted  by  the 
Naval  Attache  at  Tokyo,  the  attack  on  Wake  is  planned  for  22  Dec. 
Japanese  troops  will  be  landed  near  Kuching,  on  western  Borneo, 
within  the  next  few  days  to  seize  the  air  base  there. 


X.   Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

The  attack  on  Sevastopol,  which  started  on  17  Dec, 
was  continued,  and  our  troops  gained  some  territory.  No  fight- 
ing on  the  front  of  the  1st  Panzer  Army.  The  situation  on  the 
17th  and  6th  Army  sectors  remained  unchanged. 

Central  Army  Group: 

Enemy  attacks  on  the  95th  Infantry  Division  were  re- 
pulsed. The  XLVTI  and  III  Army  Corps  moved  to  new  positions. 


9862 

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18  Dec.  19^1  CONFIDENTIAL 

The  enemy  forces  which  pierced  our  lines  west  of  Dubna  were  stop- 
ped. Strong  enemy  attacks  along  the  entire  Moscow  front,  especial- 
ly near  Rusa. 

Northern  Army  Group; 

Our  forces  were  able  to  repulse  all  enemy  attacks. 

2.   Finnish  and  Norwegian  Front; 

We  again  have  firm  control  of  our  main  line  of  resist- 
ance near  Oshta.  Otherwise  the  situation  remains  unchanged. 

J.   North  Africa; 

Large  enemy  forces  followed  our  withdrawing  troops  in 
the  direction  of  El  Mechili-Derna.  Derna  was  still  in  our  hands 
the  evening  of  18  Dec.  Enemy  troop  columns  continued  their  en- 
circling movements  by  advancing  generally  in  a  westward  direction. 

Enemy  attacks  on  Bardia  were  repulsed.  On  19  Dec.  our  troops  are 
scheduled  to  continue  their  withdrawal  to  the  west.  The  Duce  has 
forwarded  the  following  directive  to  the  Command  of  the  Panzer 
Group  through  General  Cavallero;   "Tripolitania  must  be  defended 
under  all  circumstances.  In  this  connection  Cyrenaica  and  par- 
ticularly Benghazi  are  to  be  held  if  at  all  possible." 


it************************ 


9862 

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CONFIDENTIAL 

19  Dec.  1941 

Items  of  Political  Bnportance 

France : 

Although  the  French  Government  calls  the  seizure  of  French  vessels 
In  U.S.  ports  only  a  "protective  measure",  Admiralty  circles  are 
avare  that  this  action  by  the  U.S.A.  constitutes  but  the  first  step 
towards  incorporating  those  vessels  into  the  U.S.  Navy. 

Great  Britain: 

The  War  Minister  explained  in  the  House  of  Commons  that  the  in- 
creased danger  of  a  German  invasion  calls  for  a  law  making  ser- 
vice in  the  Home  Guard  compulsory.  It  is  not  planned  to  draft 
women.  General  Wavell  stated  that  the  Japanese  sustained  heavy 
losses  and  are  still  a  long  way  from  overrunning  Malaya.  Although 
it  will  be  impossible  to  hold  Penang,  the  Japanese  will  not  be  able 
to  exploit  their  advantages  immediately,  and  everything  has  been 
done  to  improve  Britain's  position. 

Japan ; 

According  to  a  confidential  message  from  military  circles,  it  is 
hoped  in  Tokyo  that  once  the  British  and  U.S.  bases  have  been 
eliminated,  the  Dutch  East  Indies  will  be  ready  to  negotiate  and 
make  the  necessary  amount  of  oil  available  without  a  fight. 

'French  Indo-Chinat 

The  Governor  General  of  French  Indo-China  and  local  Japanese  mili- 
tary authorities  at  Hanoi  have  entered  into  a  military  agreement 
about  cooperation,  or  division  of  operations,  between  the  Japanese 
and  French  Indo-China  armies.  All  air  bases  are  at  the  disposal 
of  the  Japanese  and  all  mail  and  telegram  service  is  under  Japa- 
nese control. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

I.  The  Chief,  Naval  Communications  reports  on  conferences  with 
the  Japanese  Navy  concerning  the  lease  of  radar  gear  for  air  and 
sea  forces  to  the  Japanese  and  transmittal  of  the  blueprints  for 
Japanese  two-man  submarines  to  the  German  Navy.  The  report  also 
covers  possibilities  for  transporting  goods  by  blockade-runners 
and  large  Japanese  submarines  with  a  cruising  radius  of  16,000 
miles.  The  Chief,  Naval  Staff  agrees  on  all  points. 

II.  Ship  "23"  and  ship  "lV  are  being  equipped  with  improved 
armament  on  the  basis  of  past  experiences  in  merchant  raider  war- 
fare. The  shipyard  operations  required  for  making  these  improve- 


9B62 

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19  Dec.  19^1  CONFIDENTIAL 

ments  reduce  the  capacities  for  other  jobs  to  such  an  extent  that 
the  Chief,  Shipbuilding  and  Construction  Department  reports  it 
impossible  to  keep  scheduled  delivery  dates  for  submarines.  The 
Chief,  Nayal  Staff  decides  that  work  on  submarines  has  priority 
over  auxiliary  cruisers. 

III.  In  view  of  the  fact  that  anti-submarine  defenses  In  the  Gi- 
braltar area  are  strong  and  have  already  caused  the  loss  of  a  con- 
siderable number  of  German  submarines,  the  Naval  Staff  is  consider- 
ing to  what  extent  it  is  practical  to  withdraw  the  large  submarines 
from  that  zone  of  operations  since  they  are  most  vulnerable  to 
anti-submarine  weapons. 


Special  Items : 

I.  Concerning  the  Military  Agreement  with  Japan; 

The  Naval  Staff,  Operations  Division  made  a  detailed  study  of  the 
draft  for  a  military  agreement  between  Japan,  Germany,  and  Italy 
forwarded  by  the  head  of  the  Tripartite-Pact  Military  Commission, 
delivered  also  by  Admiral  Nomura  on  17  Dec  Prom  the  viewpoint 
of  naval  strategy,  the  Naval  Staff  has  no  objections  to  the  terms 
of  the  agreement,  since  Admiral  Nomura  emphasized  that  the  "Zones 
of  Operations"  clause  entails  no  permanent  commitments.  Admiral 
Nomura  gave  the  assurance  that  nothing  stands  In  the  way  of  rear- 
ranging zonal  boundaries  whenever  the  situation  requires. 

However,  the  Naval  Staff  believes  that  it  Is  unnecessary  to  de- 
fine a  zone  by  geographic  coordinates  solely  for  reasons  of  naval 
warfare,  when  such  boundaries  must  be  rearranged  to  conform  with 
subsequent  requirements  and  are  of  little  interest  to  the  Army 
and  the  Air  Force  on  land.  Therefore,  one  might  be  led  to  suspect 
that  we  have  here  a  Japanese  attempt  to  effect  a  partition  of  po- 
litical spheres  of  influence  by  means  of  a  military  agreement  fix- 
ing operational  zones.  Prom  the  point  of  view  of  naval  strategy 
no  objections  could  be  raised  to  even  such  intentions.  However, 
for  political  reasons,  such  a  partition  seems  undesirable. 

This  viewpoint  of  the  Naval  Staff  is  being  forwarded  to  the  head 
of  the  Tripartite -Pact  Military  Commission,  together  with  the 
draft  of  a  different  version  of  the  agreement.   (See  War  Diary, 
Part  C,  Vol.  XV.) 

II.  A  production  estimate  based  on  Navy  priority  allocations  as 
received  from  the  Armed  Forces  High  Command  last  October  shows 
that  the  construction  and  completion  of  ships  will  drop  radically. 
Submarine  warfare,  escort  of  convoys,  coastal  defense,  and  anti- 
aircraft defense,  which  constitute  the  duties  assigned  to  the  Navy 
in  the  war  against  Britain,  cannot  be  continued  for  very  long  If 
those  quotas  are  put  into  effect,  and  the  time  can  be  foreseen 
when  naval  warfare  vill  cease  altogether. 


_192-  9862 


19  Dec.  1941  CONFIDENTIAL 

Therefore  the  Commander  In  Chief,  Navy  requests  the  Armed  Forces 
High  Command  to  revise  the  allocation  of  raw  materials  in  such  a 
way  that  the  Navy  receives  in  1942  the  minimum  quotas  necessary 
to  continue  the  operations  assigned  her  by  the  Fuehrer.  Should 
the  Armed  Forces  High  Command  he  unable  to  effect  such  a  redis- 
tribution, the  problem  will  have  to  be  submitted  to  the  Fuehrer 
for  a  decision.  See  War  Diary.  Part  B,  Vol.  V  for  a  copy  of  the 
letter  (M  Wa  Wi  1488/41  Gkdos.). 


Situation  19  Dec.  1941 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

Items  of  Importance : 

See  Radio  Intelligence  Report  No.  50/41  issued  by  the 
Chief,  Naval  Communications  (Radio  Intelligence)  for  a  compila- 
tion of  all  enemy  messages  intercepted  by  radio  monitoring  and 
radio  decoding  up  to  14  Dec.  1941. 

North  Atlantic: 

A  report  from  a  foreign  agent  of  17  Dec.  states  that  the 
Allied  War  Council  decided  on  12  Dec.  to  send  an  expeditionary  for 
ce  overseas,  presumably  to  the  Near  or  Far  East.  The  expedition- 
ary force  is  to  consist  of  eight  to  eleven  divisions.  The  port 
troops  at  Cardiff,  Newport,  Pembroke,  Caernarvon,  Liverpool,  and 
Lancaster  received  orders  for  immediate  action,  and  numerous  troop 
transports  were  dispatched  to  those  ports;   some  of  these  had  to 
be  diverted  from  the  North  Atlantic  run.  Shipments  will  begin  on 
19  Dec.  and  will  last  for  several  weeks.  The  RODNEY,  the  BERWICK, 
and  the  HERMIONE  are  en  route  to  Gibraltar,  possibly  to  escort 
troop  transports  through  the  Mediterranean.   (See  Radiogram  1919.) 

Indian  Ocean  and  Pacific  Ocean; 

Press  reports  from  Rangoon  state  that  another  large  con- 
voy has  arrived  with  Indian  troops. 

2.  Own  Situation: 

The  Norwegian  steamship  line  owning  the  SILVAPLANA 
denied  the  loss  of  the  ship.  See  War  Diary,  Part  C,  Vol.  1  for 
the  report  from  the  Commander  of  ship  "16"  which  supplements  the 
sections  of  the  War  Diary  transmitted  by  submarine  U  "68".  En- 
try in  the  War  Diary  as  per  l/Skl  29293/41  Gkdos. 

A  report  from  the  Commanding  Admiral,  Submarines  gives  the  follow- 
ing schedule  for  arrival  of  submarines  at  French  ports : 


9862 

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19  Dec  1941  CONFIDENTIAL 

Submarine  U  .7  on  25  or  26  Dec. 

Submarines  U  "124 ';  and  U  "68"  between  26  and  29  Dec. 
Submarine  U  "129"  approximately  2  or  3  Jan.  1942 


II.   Situation  Vest  Area 

1.  Enemy  Situation: 

Radio  monitoring  intercepted  enemy  reports  presumably 
giving  the  locations  of  PT  boats  along  the  southeast  coast.  At 
noon  of  18  Dec.  aerial  reconnaissance  reported  an  unidentified 
vessel  5  miles  south  of  St.  Nazaire. 

2.  Own  Situation: 

Atlantic  Coast: 

Nothing  to  report. 

Channel  Coast: 

During  the  night  of  19  Dec.  the  2nd  and  4th  PT  Flotillas 
vent  on  torpedo  and  mine-laying  missions  in  the  Yarmouth- Cromer 
area. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 
Nothing  to  report. 

2.  Norway: 

Znemy  Situation: 

Radio  monitoring  reports  that  the  cruiser  KENT  was  in 
the  Murmansk  area.  A  fix  was  obtained  on  a  British  vessel  pro- 
ceeding in  the  direction  of  the  White  Sea  and  another  one  pro- 
ceeding in  the  direction  of  Jan  Mayen. 

Own  Situation: 

The  8th  Destroyer  Flotilla  arrived  at  Tromsoe  in  the 
afternoon  of  18  Dec.   It  encountered  neither  naval  vessels  nor 
merchantmen  along  the  suspected  enemy  convoy  route,  but  unex- 
pectedly encountered  two  Russian  destroyers  northeast  of  Cape 
Bolshoi  Gorodetski.   In  the  course  of  a  battle  engagement  lasting 
13  minutes,  one  of  the  Russian  destroyers  was  definitely  badly 
damaged  and  probably  sunk.   The  secona  Russian  destroyer  was  aam- 


9862 

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19  Dec.  19^1  CONFIDENTIAL 

aged  but  escaped  into  the  fog.  The  flotilla  commander  decided  not 
to  pursue  it  in  view  of  the  fog.  According  to  a  report  from  the 
flotilla,  it  was  impossible  to  execute  the  second  part  of  the  mis- 
sion, namely  to  scout  the  Murmansk  coast  on  the  return  trip,  be- 
cause the  southeastern  part  of  the  coast  was  shrouded  in  fog  and 
the  enemy  situation  (alerting  of  the  coast  and  Kola  Bay  as  well  as 
presence  of  British  naval  forces)  later  on  developed  so  as  to  make 
it  necessary  to  avoid  Kola  Bay.  There  were  no  further  encounters 
with  enemy  forces  on  the  way  home.  Our  vessels  sustained  no  dam- 
age or  loss.  On  account  of  the  tactical  commitments,  the  flotilla 
was  barely  able  to  return  to  Tromsoe  on  the  amount  of  fuel  carried. 
(For  the  report  on  the  battle  engagement  see  Radiogram  1100.) 

Commanding  Admiral,  Norway  rightfully  demands  an  explanation  of  why 
the  presence  of  British  naval  forces  made  it  necessary  to  avoid 
Kola  Bay  when  an  attack  on  them  would  have  offered  good  chances  for 
success  in  view  of  the  long  arctic  night.  He  also  desires  an  ex- 
planation as  to  what  were  the  tactical  commitments  which  forced 
the  flotilla  to  travel  homeward  at  such  high  speed  that  all  the 
fuel  was  consumed.   (See  Radiogram  1920.)  Destroyers  Z  "25"  and 
Z  "27"  will  replenish  their  supplies  at  Narvik  on  20  Dec.  and  then 
escort  the  8th  PT  Flotilla  and  a  tanker  from  Harstad  (Vesteraalen 
Islands)  to  Tromsoe  via  a  route  leading  around  the  small  islands. 
Mines  are  suspected  along  the  northern  roadstead  from  Tromsoe  via 
Groet  Sound  to  Groetnes  since  an  enemy  submarine  was  sighted  with- 
in that  area  on  18  Dec.  The  harbor  patrol  vessel  STEINBOCK  ran 
aground  near  Vardoe  on  18  Dec. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea; 
Nothing  to  report. 


V.   Merchant  Shipping: 

Digest  No.  55  in  the  report  series  of  the  Intelligence  Division, 
Naval  Staff  entitled  "Foreign  Merchant  Shipping"  includes  the 
following:  A  survey  of  the  ships  lying  in  Gibraltar  and  ship 
movements  to  and  from  that  port  during  the  period  from  20  Oct. 
to  15  Dec;  reports  on  the  discontinuation  of  Spanish  mail  steam- 
er service  to  the  U.S.A.;  the  ships  lying  in  Malta  from  17  Oct. 
to  12  Dec;  data  on  Russian  vessels  in  Turkish  ports;   the  Amer- 
ican paravane  model,  and  the  increase  of  premiums  on  war-risk  in- 
surance on  shipping  in  the  Atlantic  and  the  Pacific. 


VI.  Submarine  Warfare 

1.   Enemy  Situation: 

An  Italian  report  states  that  a  patrol  vessel  shelled 


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19  Dec.  19*1 


CONFIDENTIAL 


and  sank  a  submarine  In  the  Strait  of  Gibraltar  on  17  Dec.  and 
took  aboard  forty  four  survivors. 


2. 


Ovn  Situation: 


Contact  with  convoy  HG  77  was  maintained  with  slight  in- 
terruptions.  The  convoy  is  heavily  escorted,  a  British  submarine 
seems  to  follow  It,  cruising  on  courses  90°  from  the  convoy's  mean 
course.     Another  steamer  was  reported  sunk  besides  the  one  pre- 
viously reported.  According  to  aerial  reconnaissance,  the  convoy 
is  made  up  of  from  50  to  60  merchant  vessels.   Our  reconnaissance 
planes  were  repeatedly  attacked  by  enemy  pursuit  planes  and  there- 
by hampered  in  carrying  out  their  mission. 

In  connection  with  the  sinking  of  the  enemy  cruiser  in  the  eastern 
Mediterranean  on  18  Aug.  (most  likely  an  error.  Must  be  18  Dec. 
See  War  Diary  18  Dec,  Submarine  Warfare,  Own  Situation.   Tr.N.), 
the  Italian  radio  monitoring  service  reports  that  an  enemy  cruiser 
of  the  Mediterranean  Fleet  sent  an  SOS  from  a  position  which  coin- 
cides with  that  of  our  submarine  at  the  time  of  action.   It  can 
therefore  be  assumed  as  certain  that  submarine  U  "371"  (Lt.  Driver) 
sank  an  enemy  cruiser  of  the  LEANDER  class. 

See  War  Diary,  Part  B,  Vol.  IV  for  the  distribution  of  submarines 
over  the  various  zones  of  operation,  and  for  a  further  report  on 
the  situation.   Special  attention  should  be  given  to  the  large 
number  of  submarines  sunk  in  the  Gibraltar  area. 

Concerning  submarine  bases  in  Italy,  the  Naval  Command,  Italy  re- 
ports that  the  following  shipyard  facilities  can  be  counted  on  for 
use  by  German  submarines:  . 


a.  Facilities  available 
immediately: 


1.  Spezia  for  6  submarines 

2.  Pola    for  2  submarines 

3.  Salamis  for  5  submarines 


Total: 


13  submarines 


(This  must 
be  Greece; 
there  was 
a  submarine 
base  there. 
Tr.N.) 


b.  Facilities  available 
beginning  15  Jan. : 


Spezia  for  7  submarines 
Salamis  for  6  submarines 


c  Facilities  available 
beginning  the  end  of 
February: 


Spezia  for  10  submarines 
Pola  for  4  submarines 
Salamis  for  6  submarines 


Thus,  the  Italians  can  furnish  facilities  for  twenty  German  sub- 
marines. After  exhaustive  conferences  with  the  Italian  Navy  we 
can  be  certain  that  specifications  and  delivery  dates  will  be  ad- 
hered to.  However  In  order  to  intensify  and  speed  up  the  work, 


-196- 


9862 


19  Dec.  19^1  CONFIDENTIAL 

it  would  be  necessary  to  make  sweeping  demands  on  the  Italians, 
which  these  could  fulfill  .only  at  the  expense  of  neglecting  the 
condition  of  their  own  vessels.   The  figures  given  above  mean  that 
the  following  number  of  submarines  must  not  be  exceeded:  For  the 
present,  twenty  six  submarines;  by  25  Jan.,  thirty  submarines; 
and  from  the  end  of  February  on,  forty  submarines.   (See  Radiogram 
1415.) 

In  view  of  this  situation,  the  Commanding  Admiral,  Submarines 
waives  the  formation  of  the  30th  Submarine  Flotilla  at  Pola.  The 
submarines  at  that  base  will  be  assigned  to  the  29th  Submarine 
Flotilla,  while  it  is  planned  to  station  only  a  submarine  base 
commander  at  Pola.   (See  Radiogram  2122.) 


> 


► 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

The  enemy  lost  ten  planes  during  daylight  raids  in  the 
western  area,  two  of  them  four-motored  Stirlings.   See  Situation 
West  Area  for  reports  of  aerial  reconnaissance  over  the  Atlantic. 
One  of  our  night  raids  set  afire  an  8,000  BRT  tanker  in  a  convoy 
northwest  of  Cardigan  Bay. 

2.  Mediterranean  Theater: 

The  X  Air  Corps  attacked  Tobruk  with  nineteen  planes. 
19  tons  of  high  explosive  bombs  were  dropped  on  the  town  and  the 
harbor  installations  and  an  anti-aircraft  position  was  silenced. 

j5.   Eastern  Front: 

Normal  air  activity  in  support  of  Army  operations.  For 
reports  by  aerial  reconnaissance  over  the  Black  Sea  see  Black  Sea, 
Enemy  Situation. 

k.        Organization: 

Concerning  the  recall  of  the  naval  officers  transferred 
prior  to  expiration  of  their  term  of  duty  (see  War  Diary  15  Dec), 
the  General  of  the  Air  Force  informed  the  Commander  in  Chief,  Navy 
that  a  compromise  between  the  diverse  opinions  expressed  by  all 
Air  Force  and  Navy  offices  concerned,  can  only  be  worked  out  by 
the  Air  Force  General  Staff  and  the  Navy  High  Command. 


VIII.  Warfare  in  the  Mediterranean 
1.   Enemy  Situation: 

We stern  Mediterranean: 

The  MALAYA  and  seven  destroyers  left  Gibraltar  in  an 


9862 

-197- 


19  Dec.  19^1  CONFIDENTIAL 

easterly  direction,  evidently  for  target  practice,  and  returned 
again  in  the  afternoon. 

Central  and  Eastern  Mediterranean; 

During  the  morning,  aerial  reconnaissance  sighted  an 
enemy  force  south  of  Malta.   It  consisted  of  a  cruiser  and  several 
destroyers.  The  same  force  was  again  sighted  in  the  afternoon, 
this  time  southwest  of  Malta.  An  Italian  aerial  photography  mis- 
sion over  Malta  sighted  a  large  battleship  in  the  large  harbor 
basin  at  0900.  It  was  identified  as  a  battleship  of  the  BARHAM 
class. 

Submarines  were  sighted  at  the  eastern  exit  of  the  Strait  of  Gi- 
braltar, off  Cape  Misurata,  near  Ostia,  north  of  Crete  and  east  of 
Cape  Colonna. 

2.  Own  Situation: 

Weather  conditions  on  18  Dec.  forced  the  3rd  PT  Flotilla 
to  abandon  its  mission  and  turn  back  at  2200. 

3.  Situation  Italy; 

The  naval  task  forces  arrived  at  Taranto.   After  the  tow 
line  broke,  the  destroyer  which  was  disabled  by  a  collision  is  be- 
ing brought  in  by  other  destroyers  and  the  tug  boat  MAX  BEHRENDT 
from  Benghazi. 

In  his  critique  of  the  Italian  operation,  the  Admiral,  German  Na- 
val Command,  Italy  states  that  the  mission  has  been  successfully 
completed  and  that  the  critical  situation  of  supply  shipments  to 
North  Africa  has  consequently  been  considerably,  although  not  de- 
cisively, improved.   He  is  of  the  opinion  that  Italian  and  Brit- 
ish naval  forces  are  just  about  equally  strong  in  cruisers  and  de- 
stroyers, but  that  the  Italians  have  a  definite  advantage  in  day- 
light operations,  since  their  battleships  outnumber  the  British 
ones.  Unfortunately,  the  Italian  Command  did  not  make  use  of  this 
numerical  superiority  during  their  operations.   However,  the  Ad- 
miral, German  Naval  Command,  Italy  thinks  that  the  reverse  was 
true  of  the  night  situation.   Then  it  would  have  been  wise  for 
the  Italians  to  avoid  an  engagement,  because  the  British  Navy  is 
better  trained  for  this  phase  of  fighting  and  also  because  the 
Italian  vessels  had  to  protect  the  convoy  and  therefore  had  but 
little  freedom  of  action.   It  is  highly  commendable  that  the  com- 
mander of  the  Italian  naval  forces  did  not  take  evasive  action 
but  rather  took  the  risk  of  proceeding  in  the  darkness  in  spite 
of  contact  with  the  enemy,  so  as  to  complete  the  mission.  It  has 
not  yet  been  explained  why  the  British  did  not  join  battle  as  was 
to  be  expected.   See  War  Diary,  Part  C,  Vol.  XIII  for  the  text  of 
the  corresponding  teletype  as  per  l/Skl  21389/41  Gkdos. 

The  Naval  Staff  can  only  agree  with  the  above 
opinion. 


-I98-  9862 


* 


19  Dec.  1941  ,  CONFIDENTIAL 

4.  Transport  of  Supplies  to  North  Africa: 

The  52nd  Naval  Transport  Squadron  arrived  at  Tripoli  dur- 
ing the  morning  with  three  steamers  and  in  Benghazi  with  one  steamer 
at  noon.  One  transport  submarine  arrived  at  Bardia  during  the  even- 
ing of  18  Dec  A  third  naval  barge  (see  War  Diary  17  Dec,  Tr.N.) 
becomes  available  for  duty  at  Benghazi  on  20  Dec.  Three  destroyers 
carrying  gasoline  for  the  Air  Force  are  scheduled  to  arrive  at  Bar- 
dia on  the  20th,  21st,  and  22nd  of  Dec 

5.  Area  Naval  Group  South: 
Aegean  Sea: 

Nothing  to  report. 
Black  Sea: 

r 

Enemy  Situation: 

Aerial  reconnaissance  sighted  four  convoys  comprising  a 
total  of  thirty  steamers  in  the  Sevastopol  area.  Each  of  the  con- 
voys was  escorted  by  naval  vessels.  Two  of  the  convoys  were  arriv- 
ing and  the  other  two  departing. 

Own  Situation: 

Nothing  to  report. 

Special  Items: 

a.  In  accordance  with  the  request  from  the  German  Naval 
Command,  Italy  (see  War  Diary  17  Dec),  the  Armed  Forces  High  Com- 
mand, Operations  Staff  decides  that  during  the  next  few  days  the. 
Italian  torpedo  boats  available  in  the  Aegean  Sea  are  to  be  diverted 
from  shipping  in  the  Aegean  and  to  be  used  to  facilitate  quick  trans- 
portation of  urgently  needed  fuel  supplies  to  Benghazi.  The  German 
General  at  Italian  Headquarters  is  to  get  the  consent  of  the  Italian 
Armed  Forces  High  Command  (see  Radiogram  1430). 

b.  The  German  Naval  Command,  Italy  forwards  for  approval 
by  the  Naval  Staff  the  proposal  of  the  Italian  Navy  concerning  in- 
stallation of  an  Italian  Naval  Transport  Office  at  Suda  (compare  War 
Diary  17  Dec).  The  German  Naval  Command,  Italy  recommends  that 
action  on  the  matter  be  delayed  in  view  of  the  imminent  loss  of 
Cyrenaica  and  the  subsequent  discontinuance  of  supply  transport  op- 
perations.   In  the  same  connection,  in  accordance  with  the  request 
from  the  Commanding  General,  Armed  Forces,  Southeast  concerning  the 
Italian  Navy's  intention  to  install  a  fortified  base  on  Suda  Bay,  the 
Armed  Forces  High  Command,  Operations  Staff,  Air  decides  as  follows: 
Pressure  should  be  brought  to  bear  on  the  Italians  so  as  to  keep 
them  from  proceeding  with  their  plan  to  install  anti-aircraft  ar- 
tillery on  Suda  Bay,  unless  such  installations  on  that  part  of  Crete, 
which  is  reserved  for  the  German  Armed  Forces  exclusively,  are  con- 
sidered absolutely  essential  by  the  Air  Force  High  Command,  Opera- 
tions Staff.  See  War  Diary,  Part  C,  Vol.  XIV  for  the  corresponding 
teletypes  as  per  l/Skl  56221  geh.,  29408/41  Gkdos.,  and  294l6/4l 
Gkdos . 


-199- 


19  Dec.  19*U  CONFIDENTIAL 

c.   Group  South  forwarded  a  request  from  the  Japanese 
Naval  Attache  at  Istanbul  asking  that  the  Group  Command  help  in 
gathering  information  on  the  situation  in  the  Indian  Ocean,  the 
Red  Sea,  etc..  The  Naval  Staff  decides  that  it  is  desirable  to 
keep  the  Japanese  informed  and  to  accommodate  them  whenever  possi- 
ble.  However,  they  should  not  be  given  information  which  would  en- 
able the  enemy,  if  he  were  to  break  the  Japanese  codes,  to  draw 
conclusions  as  to  German  ability  to  decipher  enemy  messages,  or 
which  would  throttle  our  special  news  sources.   Therefore  all  radio 
Intelligence  reports  and  other  secret  matter  will  be  sent  over  our 
own  transmitters  from  Berlin  to  the  Naval  Attache  at  Tokyo.   The 
center  of  all  cooperation,  which  is  just  in  its  initial  stages,  is 
Berlin. 


IX.   Situation  East  Asia 

1.  Enemy  Situation: 

Admiral  Nimitz  was  named  as  successor  to  Admiral  Kimmel 
for  the  post  of  Commander  in  Chief  of  the  U.S.  Pacific  Fleet. 

The  Japanese  Admiralty  Staff  terms  the  transfer  of  U.S.  battleships 
to  the  Pacific  as  foolish  and  would  consider  it  more  appropriate  if 
they  were  sent  to  Ceylon  via  the  Atlantic. 

2.  Situation  Japan; 

The  five  Japanese  submarines  which  participated  in  the  at- 
tack on  Pearl  Harbor  are  considered  lost.  According  to  a  report 
from  the  Military  Attache  at  Bangkok  on  17  Dec,  the  enemy  is  offer- 
ing tenacious  resistance  to  the  advance  of  the  western  column  on 
Malaya.  A  Japanese  air  raid  sank  three  and  damaged  six  transport 
vessels  off  Penang.  Weaker  enemy  forces  are  evading  the  central 
column  to  the  southwest.  The  eastern  column  has  reached  Kalebir. 
The  Japanese  sustained  heavy  losses  in  the  jungle  fighting.   The 
absence  of  adequate  dock  installations  makes  the  unloading  of  motor- 
ized units  a  very  time  consuming  process.   Only  weak  enemy  forces 
are  being  encountered  on  British  Borneo.   Oil  installations  near 
Miri  are  said  to  have  been  thoroughly  destroyed.   Several  Dutch  sub- 
marines are  said  to  be  stationed  between  Malaya  and  Borneo.   Volume 
46  of  the  news  analysis  "Foreign  Navies"  published  by  the  Intelli- 
gence Division,  Naval  Staff  contains  a  chronological  Index  of  the 
first  events  in  the  war  for  Greater  East  Asia  and  a  compilation  of 
Japanese  reports  on  enemy  shipping  losses. 


X.   Army  Situation 

1.   Russian  Front: 


Southern  Army  Group: 

The  enemy  offers  tenacious  resistance  In  front  of  Sevas- 


r200-  9862 


19  Dec.  1941  CONFIDENTIAL 

topol.  The  general  situation  on  the  sectors  of  the  1st  Panzer  Army, 
the  17th  Army,  and  the  6thl  Army  remains  unchanged. 

Central  Army  Group; 

Strong  enemy  attacks  on  the  2nd  Army  are  beginning  from  the 
direction  of  Yelets.  The  positions  of  the  XXXVII,  the  LII,  and  XXIV 
Army  Corps  vere  moved  further  west  to  run  in  the  general  line  from 
Mogilka  to  Krapivna.  The  enemy  launched  strong  attacks  all  along  the 
front  of  the  4th  Army  and,  since  our  forces  there  were  rather  weak, 
was  able  to  penetrate  in  several  places.  Reserves  were  brought  up 
by  air.  Strong  enemy  forces  attacked  on  the  9th  Army  sector  south 
and  west  of  Kalinin  but  could  be  repulsed. 

Northern  Army  Group; 

Strong  but  unsuccessful  enemy  attacks  were  launched  north 
of  Lake  Ilmen  and  east  of  Volkhovstroy.   Our  artillery  smashed  enemy 
preparations  south  of  Leningrad. 

2.  Finnish  and  Norwegian  Front; 

Enemy  attempts  to  cross  the  Svir  River  in  the  sector  held 
by  the  163rd  Infantry  Division  were  repulsed. 

3.  North  Africa; 

The  enemy  reached  the  line  El  Mechili-Derna.  The  points 
of  the  enemy  encircling  column  which  consists  of  about  fifty  tanks 
and  two  motorized  battalions  reached  the  area  north  of  Smus.  The 
points  of  our  armored  divisions  reached  the  area  around  El  Abiar. 
The  Air  Force  continues  to  suffer  badly  from  lack  of  fuel .  Enemy 
bombing  raids  inflicted  heavy  losses  on  our  forces  on  18  and  19 
Dec.  This  was  possible  because  our  Air  Force  is  unable  to  put  a 
sufficient  number  of  pursuit  planes  into  the  air. 


*****#*##*****»********** 


9862 

-201- 


CONFIDENTIAL 


20  Dec.  1941 

Items  of  Political  Lmportance 

France : 

The  U.S.  Ambassador  at  Vichy  expressed  the  hope  to  Marshal  Petaln 
that  France  continue  to  maintain  her  present  neutral  status.   It 
was  officially  announced  in  Washington  on  19  Dec.  that  the  U.S. 
has  concluded  an  agreement  with  the  High  Commissioner  of  Martin- 
ique, Admiral  Robert  concerning  far-reaching  cooperation.   This 
agreement  stipulates  that  all  French  possessions  in  the  West  In- 
dies and  all  naval  units  stationed  there  will  be  considered  neu- 
tral. The  further  exchange  of  goods  within  that  area  will  be  per- 
mitted so  long  as  it  does  not  result  in  anything  detrimental  to 
U.S.  interests,  i.e.,  so  long  as  French  naval 4forces  do  not  attempt 
to  leave  port.  An  official  Vichy  denial  can  hardly  change  these 
facts. 

Great  Britain; 

Duff  Cooper  was  appointed  Governor  of  Singapore  and  made  a  cabinet 
member  with  the  portfolio  of  Minister  for  Far  Eastern  Affairs.  It 
is  said  that  Eden  has  flown  .to  Moscow.  A  report  of  10  Dec.  from 
the  Turkish  Minister  at  Kuibyshev  (Samara)  states  that  Eden  will 
discuss  the  following  points  with  Stalin: 

1.  The  transfer  of  naval  bases  on  the  Russian  Pacific  Coast 
to  the  British  and  U.S.  Navies. 

2.  Military  cooperation  with  the  Russians  in  the  Petsamo 
area. 

3.  Lmmediate  opening  of  a  joint  British-Russian  front  in 
the  Caucasus,  and  Russian  permission  for  transit  of  British  troops 
to  that  area. 


west. 


4.   Stalin's  request  for  the  opening  of  a  second  front  in  the 


A  report  from  a  neutral  diplomatic  source  states  that  British  pub- 
lic opinion,  which  was  confident  up  to  now,  has  undergone  a  dras- 
tic change.   One  of  the  main  reasons  for  this  is  the  sinking  of  the 
two  battleships  by  the  Japanese. 

According  to  foreign  press  reports,  an  important  official  joint 
announcement  from  London,  Washington,  and  Moscow  may  still  be  ex- 
pected before  Christmas.  Besides  Eden's  trip  to  Moscow,  Church- 
ill's trip  to  Washington  is  mentioned  in  this  connection.   The 
press  bases  its  reports  on  the  fact  that  conferences  concerning 
Allied  cooperation  are  taking  place  in  each  of  the  three  capitals, 
and  t      'lo-Russian  relations  as  well  as  creation  of  an  Allied 
War  Council   re  the  most  important  points  under  discussion.   It 
is  said  that  he  U.S.  has  demanded  that  the  seat  of  the  War  Council 
should  be  at  .ashington.  Donovan,  General  Marshall,  Admiral  Leahy 


-202- 


9862 


20  Dec.  19^1  CONFIDENTIAL 

or  Sumner  Welles  have  been  mentioned  for  the  post  of  chairman.   It 
Is  said  that  the  High  Command  for  the  various  fronts  will  probably 
be  divided  so  that  the  British  will  be  in  charge  of  operations  in 
the  Middle  East,  the  Americans  In  the  Pacific,  and  the  Russians  on 
the  European  Eastern  Front.  Since  no  special  mention  is  made  of  the 
Atlantic,  it  must  be  presumed  that  the  British  will  be  in  charge  of 
operations  in  that  area. 

Portugal : 

From  the  important  speech  made  by  Salazar  concerning  the  occupation 
of  Timor,  it  is  apparent  that  the  Dutch  have  already  evacuated 
the  island  following  a  protest  by  the  Portuguese. However,  the  Aus- 
tralian forces  have  remained,  and  they  are  of  course  the  ones  who 
have  the  greatest  interest  in  keeping  Timor  from  the  Japanese. 

U.S.A.; 

Reports  here  also  state  that  an  inter-Allied  conference  will  be 
held  at  Washington  in  January  for  the  purpose  of  discussing  the 
question  of  coordination  of  Allied  activities  and  creation  of  a 
joint  War  Council.  Secretary  of  War  Stimson  stated  that  accord- 
ing to  the  Lend-Lease  Act,  shipments  are  not  to  be  curtailed  but 
increased. 

Japan ; 

The  Government  has  requested  Thailand  to  become  a  signatory  power 
to  the  Tripartite  Pact. 


Special  Items: 

I.   Basic  Observations  concerning  the  Naval  Warfare  Situation; 

On  11  Dec.  the  Commanding  Admiral,  Group  West  reported  as  follows; 
"The  great  successes  scored  by  the  Japanese  Air  Force  and  possible 
new  strategic  developments  in  the  Atlantic  as  the  result  of  the 
transfer  or  weakening  of  the  U.S.  Atlantic  Fleet  and  the  possible 
transfer  of  further  heavy  British  naval  units  to  East  Asia  cause 
me  to  demand  the  immediate  transfer  of  a  well- trained  bomber  squad- 
ron to  the  Norwegian  area  for  the  sole  purpose  of  attacking  heavy 
vessels  of  the  British  Home  Fleet,  especially  aircraft  carriers. 
I  must  request  this  in   spite  of  the  critical  situation  prevailing 
in  other  theaters  of  war.   It  is  possible  that  we  will  thereby  be 
able  to  achieve  a  balance  of  power  which  will  again  enable  us  to 
conduct  far-reaching  naval  operations  in  the  Atlantic.  These  prom- 
ise to  be  especially  successful  if  supply  shipments  to  Britain  fall 
off  due  to  the  curtailment  of  American  aid." 

Group  North  expressed  the  same  opinion  concerning  this  problem  on 
12  Dec,  at  which  time  all  the  possibilities  for  aerial  warfare 
were  set  forth  in  detail.  These  documents  caused  the  Naval  Staff 
to  set  down  its  basic  views  about  the  problems  of  naval  strategy 


-205-  9862 


20  Dec.  19^1  CONFIDENTIAL 

confronting  the  great  naval  powers  of  the  earth  at  the  outbreak  of 
war.  Naturally,  all  commands  of  the  German  Navy  should  take  an 
active  interest  in  these  problems. 

The  influence  which  German  power  exerts  on  the  sea  routes  of  our 
enemies  in  the  Atlantic  and  the  Mediterranean  causes  us  to  partici- 
pate directly  in  solving  these  problems.   Therefore,  the  Naval 
Staff  welcomes  proposals  submitted  even  if  they  go  beyond  the 
authority  of  the  respective  Operations  Staff. 

However,  in  the  present  situation,  where  the  enemy  has  freedom  of 
action  and  local  superiority  on  several  sectors  of  the  front,  it 
is  unfortunately  impossible  to  use  special  forces  particularly 
some  from  other  branches  of  the  Armed  Forces  and  urgently  to  re- 
quest additional  ones  as  important  so  as  to  be  able  to  tackle  rec- 
ognized problems.  For  example,  this  applies  to  the  mining  of  the 
Suez  Canal  as  well  as  to  the  use  of  trained  bomber  units  against 
the  heavy  vessels  of  the  British  Home  Fleet  for  the  purpose  of 
equalizing  the  naval  forces.   However,  the  Naval  Staff  knows  that 
the  Armed  Forces  High  Command  is  fully  aware  of  all  these  problems. 

In  this  connection  it  is  also  felt  to  be  most  unfortunate  that  just 
now  our  warfare  In  foreign  waters  has  temporarily  come  to  almost  a 
complete  halt,  and  that  all  submarine  operations  but  the  siege  of 
the  British  Isles  have  been  forced  to  follow  a  course  apparently 
deviating  from  the  general  precepts  of  naval  strategy  as  the  result 
of  the  dangerous  situation  in  the  Mediterranean  and  other  areas. 
The  Arctic  area,  the  sea  route  through  the  Channel,  the  transport 
of  supplies  to  North  Africa,  and  the  sea  routes  in  the  Black  Sea 
and  the  Aegean  Sea  (Crete!)  all  pose  problems  which  at  this  time 
must  be  considered  the  focal  points  of  our  fight  for  survival. 
They  demand  the  full  use  of  all  German  means  of  warfare  in  the 
coastal  areas  and  moreover  tie  up  part  of  our  offensive  forces 
(large  submarines!).   It  is  hoped  however,  that  this  is  but  tem- 
porarily the  case. 

The  Naval  Staff  attaches  special  importance  to  the  use  of  appro- 
priate naval  forces  in  the  war  In  the  Atlantic  and  other  oceans 
and  Is  particularly  concerned  with  getting  them  ready  for  duty. 
Furthermore  It  is  important  at  present,  and  will  be  no  less  so  for 
bringing  the  presumably  lengthy  war  to  a  victorious  conclusion, 
that  we  use  all  available  forces  to  hold  on  tenaciously  to  what  we 
have  gained  and,  as  heretofore,  continue  to  inflict  damage  on  the 
enemy  and  increase  our  fighting  strength  by  the  clever  deployment 
of  all  our  forces. 

Corresponding  directives  to  Groups  West,  North,  and  South;   Com- 
manding Admiral,  Submarines;   German  Naval  Command,  Italy  with 
copies  to  Fleet  and  Commanding  Admiral,  Norway.   Copy  of  informa- 
tion sent  to  the  Chiefs  of  Office,  Naval  Staff  and  the  Liaison 
Officer  at  the  Armed  Forces  High  Command,  as  well  as  the  Naval 
Adjutant  to  the  Fuehrer  as  per  l/Skl  2159/41  Gkdos.  Chefs,  to- 
gether with  the  previous  directives  from  the  Commander  in  Chief, 
Navy  2113/41  Gkdos.  Chefs,  and  2122/41  Gkdos.  Chefs,  to  be  found 
in  War  Diary  Files  "Fundamental  Problems  of  Warfare". 


.  9B62 

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20  Dec.  1941  CONFIDENTIAL 

II.  Coastal  Defense: 

The  construction  of  a  new  "West  Wall"  on  the  Arctic,  North  Sea, 
and  Atlantic  coast  areas  under  our  control  as  ordered  by  the  Fueh- 
rer, must  temporarily  be  curtailed  due  to  the  heavy  demands  made 
on  our  forces  and  materials  for  other  purposes.   The  curtailments 
are  in  each  instance  ordered  by  the  Armed  Forces  High  Command  on 
the  basis  of  orders  given  by  the  Fuehrer. 

The  necessity  to  achieve  maximum  results  in  extensive  areas  with 
limited  means  demands  more  centralization  of  leadership  than  had 
been  planned  up  to  this  time.   Therefore  the  Commander  in  Chief, 
Army  will  be  entirely  responsible  for  the  planning  of  coast  defenses, 
with  the  other  branches  of  the  Armed  Forces  and  their  commanders 
cooperating.   In  this  the  Commander  In  Chief,  Navy  remains  respon- 
sible for  the  naval  warfare  requirements,  shipping,  and  coastal 
artillery  defense.   The  Commander  in  Chief,  Navy  alone  is  responsi- 
ble for  all  measures  to  be  taken  along  the  North  Sea  coast.   Reich 
Minister  Dr.  Todt  is  in  charge  of  all  civilian  manpower  to  be  used 
in  construction  work.   See  War  Diary,  Part  C,  Vol.  X  for  the  copy 
of  the  order  from  the  Armed  Forces  High  Command,  Operations  Staff, 
National  Defense  as  per  l/3kl  29255/41  Gkdos. 

III.  The  Fuehrer  takes  over  the  Army  High  Command: 

According  to  a  still  confidential  report  from  Fuehrer  Headquarters, 
the  Commander  in  Chief,  Army,  Field  Marshal  von  Brauchitsch  has  re- 
linquished his  command.  The  Fuehrer  has  personally  taken  over  the 
Army  High  Command,  supplementing  his  position  as  Supreme  Commander. 
A  farewell  order  from  the  retiring  Field  Marshal  to  the  Army  men- 
tions reasons  of  health.  Details  concerning  this  vital  measure  are 
so  far  unknown. 


Situation  20  Dec.  1941 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation: 

On  18  Dec,  several  of  the  destroyers  based  at  Gibraltar 
were  replenishing  their  supplies  at  Ponta  Delgada.   Light  British 
naval  forces  were  cruising  in  the  Azores  area  on  19  Dec.  Accord- 
ing to  radio  decoding,  the  British  cruiser  which  departed  from  Ber- 
muda en  route  to  Gibraltar  on  12  Dec.  was  supposed  to  pass  the  po- 
sition 34°  00'  N,  44°  30*  W  and  }4o  30 »  N,  30©  00'  W  and  receive 
further  course  directions  from  the  Chief,  North  Atlantic.  The  air- 
craft carrier  FORMIDABLE  which  had  been  in  the  U.S.  for  repairs, 
was  nearing  the  Western  Approaches  on  18  Dec.   On  18  Dec.  radio 
station  Annapolis  broadcast  a  directive  for  the  Commander  of  the 
Boston  District  to  several  port  commanders  and  coastal  patrols  ad- 
vising them  that  unescorted  ships  en  route  to  Portland  and  Ports- 
mouth are  allowed  to  travel  within  a  specified  danger  zone  only 
under  good  weather  conditions  and  by  special  permission. 


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20  Dec.    19^1  CONFIDENTIAL 

Indian  Ocean; 

On  19  Dec.  a  U.S.  steamer  received  orders  to  proceed  to 

Colombo  for  refuelling,  since  Penang  is  endangered,  and  subsequent- 
ly to  proceed  to  New  York  via  Durban  and  Trinidad. 

2.   Own  Situation; 

Instruction  to  all  submarine  supply  ships  concerning  the 

special  code  effective  after  broadcast  of  code  word  "Ypern"  by 
Radiogram  2149.  Report  on  the  Enemy  Situation  by  Radiogram  2200. 


II.   Situation  West  Area 

1.  Enemy  Situation; 

A  convoy  coming  from  the  Channel  was  located  southwest  of 
the  Bristol  Channel  at  19^0  and  was  there  attacked  by  planes. 

Long-range  reconnaissance  located  convoy  HG  77  at  noon,  approximate- 
ly 500  miles  northwest  of  Lisbon,  course  J40°.   The  convoy  comprised 
thirty  five  steamers,  three  cruisers,  two  escort  vessels,  and 
UNICORN. 

2.  Own  Situation; 

Atlantic  Coast; 

The  Brest  harbor  defense  flotilla  shot  down  two  enemy 
planes  on  18  Dec . 

Channel  Coast; 

The  2nd  and  4th  PT  Flotillas  executed  their  mining  mission 
according  to  plan.  Enemy  destroyers  prevented  them  from  launching  a 
torpedo  attack.  All  boats  reached  their  operating  base  without  in- 
terference. A  ground  mine  sank  a  coastal  motor  boat  in  the  fog  off 
Calais. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 
Nothing  to  report. 

2.  Norway; 

Enemy  Situation; 

According  to  radio  monitoring,  three  British  naval  ves- 
sels, presumably  identified  as  one  heavy  cruiser  and  several  de- 


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20  Dec.  19^1  CONFIDENTIAL 

stroyers,  were  located  in  the  Murmansk  area.   It  is  likely  that  an 
aircraft  carrier  is  also  in  the  vicinity,  since  such  a  vessel  was 
identified  in  radio  telephone  conversations.   It  may  be  assumed 
that  planes  are  being  transported. 

On  19  Dec.  a  Russian  submarine  was  sighted  northwest  of  Kharlovka. 

Own  Situation; 

The  minelayer  COBRA  left  Aalesund  en  route  to  Tromsoe. 
On  19  Dec.  the  tanker.  ALGOT  and  motor-minesweeper  PARIS  touched 
ground  in  the  approach  to  Maaloey. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 
Nothing  to  report. 


V.   Submarine  Warfare 

1.  Enemy  Situation: 

According  to  radio  monitoring,  submarines  were  reported 
sighted  300  miles  south  of  Porcupine  Bank  and  in  the  Gibraltar  area. 
In  the  Gibraltar  area  a  submarine  attacked  the  British  steamer 
DYNAMO.  The  submarine  was  chased  and  attacked  with  depth  charges. 
A  plane  sighted  another  submarine  off  Cape  Spartel. 

2.  Own  Situation: 

Three  submarines  maintained  contact  with  convoy  HG  77. 
The  enemy  steered  a  sharp  zig-zag  course.   See  Situation  "West  Area 
for  report  on  air  reconnaissance  sighting  the  convoy.  The  subma- 
rine operating  outside  of  the  Dardanelles  sank  a  tanker  of  approxi- 
mately 7,000  BRT  travelling  with  dimmed  lights  in  the  southern  exit 
of  the  strait.   This  was  presumably  one  of  the  reported  Russian 
blockade-runners.   See  War  Diary,  Part  B,  Vol.  IV  for  further  re- 
ports on  the  submarine  situation. 

The  Commanding  Admiral,  Submarines  requests  a  decision  whether  sub- 
marines scheduled  for  operations  in  the  Mediterranean  may  be  used 
for  escorting  the  ship  DOGGERBANK  instead  of  the  submarines  assigned 
to  operation  "Paukenschlag",  since  the  latter  consume  too  much  fuel. 

The  Naval  Staff  agrees,  unless  facilities  for  refuelling  submarines 
from  ship  DOGGERBANK  are  adequate  to  take  care  of  the  problem. 
Furthermore,  the  Commanding  Admiral,  'Submarines  again  requests  re- 
lease of  all  large  submarines  for  operations  in  the  Atlantic  since 
they  are  not  suited  for  operations  in  the  Mediterranean  and  west  of 
Gibral tar . 


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20  Dec.  1941  CONFIDENTIAL 

The  Naval  Staff  agrees  with  this  idea  and  has  itself 
already  repeatedly  expressed  the  opinion  that  large 
submarines  are  not  suited  for  operations  in  the  Medi- 
terranean.  They  bad  to  be  used  west  of  Gibraltar 
under  existing  circumstances.   They  must  be  used  there 
as  long  as  the  situation  in  the  Mediterranean  requires. 
When  used  in  connection  with  the  North-South  convoys, 
an  operation  for  which  also  these  large  submarines  are 
suited,  they  help  to  relieve  the  situation  in  the  Medi- 
terranean.  The  Commanding  Admiral,  Submarines  is 
authorized  gradually  to  withdraw  the  large  submarines 
in  proportion  to  the  increase  in  the  number  of  small 
fc  submarines  on  duty  in  the  Mediterranean. 

The  Commanding  Admiral,  Submarines  reports  on  scheduled  operations 
as  follows: 

"1.   The  following  submarines  will  be  transferred  to  the  Mediterra- 
nean before  the  full  moon:  U  "83";   U  "451";   U  "202";   U  "133"; 
U  "577".   Counting  these,  twenty  five  submarines  will  then  be  sta- 
tioned in  the  Mediterranean. 

"2.   Five  more  submarines  will  be  sent  by  the  beginning  of  the  new 
moon  in  the  middle  of  January,  and  four  more  in  February.   In  view 
of  this  assignment,  reference  is  made  to  the  capacity  of  the  Italian 
shipyards  on  which  the  German  Naval  Command,  Italy  reported  (see 
War  Diary  19  Dec).   Then  the  best  and  most  capable  of  our  submarines 
will  be  in  the  Mediterranean. 

"3.  The  following  submarines  will  operate  west  of  Gibraltar: 
Eight  submarines  departing  from  French  bases  in  December. 

"4.  A  submarine  escort  for  ship  DOGGERBANK. 

"5.  Besides  the  six  large  submarines  already  set  aside  for  opera- 
tion 'Paukenschlag'  along  the  American  coast,  submarines  U  "107", 
U  "108",  and  U  "67"  will  proceed  to  Lorient  after  completion  of  the 
present  operation  against  convoy  HG  77,  and  will  subsequently  take 
part  in  the  American  operation.  All  other  large  submarines  will 
also  be  used  in  this  area  as  they  become  available. 

"6.   The  new  medium  submarines  with  their  young  and  inexperienced 
commanders,  coming  from  bases  in  Germany,  will,  until  further  no- 
tice, proceed  to  French  bases  in  order  to  refuel.   These  submarines 
will  subsequently  be  put  into  -operation  in  the  western  Atlantic, 
probably  near  the  Bank  of  Newfoundland. 

"Reason  for  Paragraph  6  above:   The  area  off  Gibraltar  at  this 
time  presents  the  greatest  difficulties  in  view  of  the  strong  anti- 
submarine defenses  there.   The  HG  convoys  are  the  ones  which  are 
most  heavily  escorted.   The  new  submarines  are  not  equal  to  both 
tasks  and  therefore  cannot  be  used." 

The  Naval  Staff  agrees  with  these  plans.   The  right  to  make  changes 
in  the  plans  for  February  Is  reserved.   The  number  of  submarines 
scheduled  to  proceed  to  the  Mediterranean  should  not  be  cut.   The 


9862 

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20  Dec.  19^1  CONFIDENTIAL 

ultimate  number  of  submarines  to  be  assigned  will  depend  on  possible 
losses.   See  War  Diary,  Part  C,  Vol.  IV  for  the  corresponding  di-  . 
rective  to  Commanding  Admiral,  Submarines  (l/Skl  Iu  2168/41  Gkdos. 
op  Chefs . ) . 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

The  5th  Air  Force  reported  that  a  minelayer  was  attacked 
and  badly  damaged  near  the  Faroe  Islands.   An  investigation  has 
been  ordered  as  to  what  type  ship  was  involved.   One  FW  200  was 
shot  down  by  enemy  defenses  during  long-range  reconnaissance  on 
19  Dec.  During  the  night  of  20  Dec,  thirty  planes  flew  mining 
missions  over  the  Thames  and  eleven  planes  flew  missions  against 
shipping  targets. 

2.  Mediterranean  Theater; 

For  report  o'f  aerial  reconnaissance  see  Mediterranean, 
Enemy  Situation.  Fourteen  Ju  88' s  flew  missions  against  enemy 
troop  columns  east  of  Derna. 

3.  Eastern  Front; 

Light  air  activity  on  the  land  fronts.   In  the  Arctic 
Ocean  planes  unsuccessfully  attacked  a  steamer  and  a  destroyer 
northeast  of  the  Kildin  Islands. 


VII.  Warfare  in  the  Mediterranean 

1.   Enemy  Situation; 

Western  Mediterranean; 

During  the  course  of  the  day  the  MALAYA,  the  ARGUS,  and 
one  cruiser  of  the  DIDO  class  were  at  sea  for  a  few  hours  east  of 
Gibraltar,  apparently  engaged  in  maneuvers. 

Central  and  Western  Mediterranean; 

According  to  an  aerial  photography  mission  conducted  by 
the  X  Air  Corps,  one  battleship  was  said  to  be  lying  in  La  Valetta 
in  the  afternoon  of  19  Dec.   Italian  air  reconnaissance  made  the 
same  observation  during  the  morning  of  20  Dec,  and  they  also 
sighted  eight  to  ten  destroyers  and  three  large  merchantmen.  Ac- 
cording to  Italian  air  reconnaissance,  five  heavy  and  three  light 
vessels  and  destroyers  were  lying  in  Alexandria  during  the  after- 
noon, four  light  cruisers  were  at  sea  off  Alexandria,  and  J>0   miles 
from  this  group  was  another  light  cruiser.  All  these  vessels  were 
on  a  westerly  course. 


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20  Dec.  19^1  CONFIDENTIAL 

A  fairly  large  vessel,  allegedly  a  battleship  of  the  NELSON  class, 
was  sighted  from  Cape  Matapan  during  the  morning,  sailing  a  wester- 
ly course.   No  further  data  is  available  to  substantiate  this  most 
unlikely  assumption.   Neither  NELSON  nor  RODNEY  can  be  the  vessel 
in  question  according  to  data  available  to  the  Naval  Staff.  Reports 
from  Italian  agents  state  that  two  Spanish  steamers  arrived  at  To- 
bruk  from  Gibraltar  via  Malta.   Two  other  steamers  are  waiting  at 
Malta  for  two  destroyers  to  escort  them  to  Tobruk. 

2.  Situation  Italy; 
Nothing  to  report. 

3.  Transport  of  Supplies  to  North  Africa; 
Nothing  to  report. 

4.  Area  Naval  Group  South; 

Aegean  Sea; 

See  Radiogram  2035  for  the  request  from  the  German  Naval 
Command,  Italy  to  load  available  Italian  torpedo  boats  with  avia- 
tion fuel  at  Piraeus  and  to  dispatch  them  to  Benghazi.   Group  South 
requests  clarification  whether  the  directive  concerning  use  of 
Italian  torpedo  boats  for  transport  of  supplies  to  North  Africa 
concerns  only  the  vessels  under  Italian  command,  respectively  those 
under  the  command  of  the  Admiral,  Dodecanese,  or  whether  it  also 
applies  to  the  vessels  under  the  Admiral,  Aegean.   Group  South 
points  out  that  the  latter  vessels  are  indispensable  to  operations 
connected  directly  with  the  African  operations  and  also  calls  at- 
tention to  the  new  request  from  the  Air  Force  units  based  on  Crete 
for  a  monthly  shipment  of  30,000  tons  of  gasoline  and  ammunition. 
For  details  see  Radiogram  1150. 

For  requests  concerning  personnel  from  the  Admiral,  Aegean  to  the 
Navy  Personnel  Office  see  Radiogram  1845. 

The  Italian  request  concerning  installation  of  an  Italian  naval  com- 
mand on  Suda  is  now  also  forwarded  directly  to  the  German  Naval 
Staff  by  the  Italian  Admiral.   (Compare  War  Diary  19  Dec.)  Copy 
as  per  l/Skl  2954l/4l  Gkdos.  in  War  Diary,  Part  C,  Vol.  XIII. 

Black  Sea; 

Enemy  Situation; 

No  new  observations. 

Own  Situation; 

According  to  a  report  from  Naval  Group  South,  Rumanian 
destroyers  are  said  to  have  sunk  a  Russian  submarine  on  1  Dec. 
and  another  one  on  17  Dec.   Otherwise  nothing  to  report. 


9862 

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20  Dec.  19^1  CONFIDENTIAL 

VIII.  Situation  East  Asia 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Situation  Japan; 

More  troops  were  landed  on  eastern  Borneo.  Landing  opera- 
tions on  western  Borneo  are  being  prepared.   Japanese  destroyers 
sank  three  submarines  in  the  South  China  Sea.   One  Japanese  destroy- 
er was  lost  during  these  operations.   The  Japanese  captured  British 
aerial  torpedoes  at  the  air  base  of  Kota  Bharu.  Some  of  these  are 
being  forwarded  to  the  German  Navy  via  blockade-runners.  Press  re- 
ports state  that  a  British  naval  vessel  was  sunk  south  of  Hong  Kong. 


IX.  Army  Situation 

1.  Russian  Front: 

Southern  Army  Group: 

Heavy  fighting  around  Sevastopol.  No  noteworthy  fighting 
on  the  1st  Panzer  Army  sector.  Some  enemy  attacks  were  repulsed  on 
the  sectors  of  the  17th  and  the  6th  Army. 

Central  Army  Group: 

The  enemy  continued  his  attacks  along  the  entire  front. 
Some  of  these  were  rather  strong  and  were  supported  by  artillery, 
tanks,  and  planes.  The  enemy  forces  which  were  reported  on  the 
march  from  Yelets  are  advancing  towards  our  positions  in  a  broad 
front.  Fighting  is  taking  place  around  several  enemy  penetrations 
on  the  2nd  Army  sector.  Strong  enemy  attacks  were  repulsed  on  the 
4th  and  9th  Army  sectors. 

Northern  Army  Group: 

The  lines  of  the  I  Army  Corps  south  of  Volkhovstroy  were 
withdrawn  as  far  as  Panevo.  Strong  enemy  attacks  near  Ovlovno  and 
south  of  Schluesselburg  as  well  as  west  of  Oranienbaum  were  repulsed 

2.  Finnish  Front: 

No  change  in  the  situation. 

5.   North  Africa: 

Strong  enemy  forces  with  new  armored  units  which  followed 
our  Panzer  Group  reached  the  area  approximately  90  km.  from  Ben- 
ghazi by  the  evening  of  20  Dec.  At  that  time  our  Panzer  Corps 
stood  in  the  area  southeast  of  Benghazi  after  surmounting  most  dif- 
ficult road  conditions.  The  Italian  XXI  and  X  Army  Corps  held  the 


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20  Dec.  19*U 


CONFIDENTIAL 


covering  positions  near  Karaua  and  north  of  Maraua.  The  Air  Force 
was  able  to  fly  only  one  mission  in  support  of  our  troop  movements 
because  of  fuel  shortage.  Some  of  the  fuel  transported  to  North 
Africa  by  submarines  is  unusable  because  of  too  low  an  octane  rat- 
ing. Our  losses  from  enemy  air  action  have  increased  to  a  regret- 
table extent. 


***♦**♦♦♦»***♦***♦***#*♦* 


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9862 


CONFIDENTIAL 

21  Dec.  19^1 

Items  of  Political  Importance 

Great  Britain; 

The  Government  published  a  declaration  concerning  the  occupation 
of  Timor  which  corroborates  the  statements  made  by  Salazar.  The 
British  declaration  states  that  Australian  and  Dutch  troops  occu- 
pied Timor  while  negotiations  were  still  in  progress,  supposedly 
because  there  was  danger  of  a  Japanese  attack. 

Portugal: 

The  occupation  of  Timor  is  causing  concern,  mainly  because  it  is 
feared  that  the  U.S.  might  seize  the  Azores  or  the  Axis  powers 
might  use  it  as  an  excuse  to  occupy  the  Iberian  Peninsula. 

Italy; 

In  Brazil,  the  Italian  air  line  "Lati"  has  also  been  forced  to  dis- 
continue operations  because  its  shipments  of  gasoline  were  cancel- 
led. 

Colombia: 

The  President  declared  that  Colombia  feels  obliged  to  break  off 
diplomatic  relations  with  the  Axis  powers. 

Brazil : 

Diplomatic  reports  state  that  the  Government  has  firmly  resolved 
not  to  comply  with  the  U.S.  request  to  break  off  diplomatic  rela- 
tions with  the  Axis  powers. 

Spain: 

Press  reports  state  that  Spain  will  continue  to  maintain  her  "non- 
belligerent" status. 


Special  Items: 

I.  Relief  from  Duty  of  the  Commander  in  Chief,  Army: 

See  War  Diary  Piles  "Barbarossa"  for  the  order  of  the  day  from  the 
Fuehrer  to  the  soldiers  of  the  Army  and  the  Waffen-SS  which  was 
distributed  on  19  Dec,  and  the  order  of  the  day  to  the  Army  from 
Field  Marshal  von  Brauchitsch  of  19  Dec. 

II.  The  Armed  Forces  High  Command,  Operations  Staff,  National  De- 
fense informed  the  Naval  Staff  of  the  results  of  the  conference  be- 
tween the  Commanding  General,  Norwegian  Theater,  and  Field  Marshal 


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9862 


21  Dec.  19^1  CONFIDENTIAL 

Mannerheim.   It  was  decided  not  to  launch  the  winter  offensive  on 
Kandalaksha,  but  to  launch  instead  a  massed  attack  on  Byelomorsk 
in  the  beginning  of  March  to  cut  the  railway  to  Murmansk  and  to 
gain  an  initial  point  for  further  operations.  The  prospect  of  get- 
ting the  VII  Mountain  Division  under  his  command  was  held  out  to 
Field  Marshal  Mannerheim.   This  division  can  be  brought  up  in  early 
January  via  Helsinki  and  Petrozavodsk. 

III.  The  Food  Situation  in  Italy: 

Report  No.  10  published  by  the  Naval  High  Command,  Administrative 
Division  giving  a  very  detailed  review  of  the  food  situation  in 
Italy  states  in  Its  summary  that  it  is  still  too  early  to  draw  far- 
reaching  conclusions  showing  that  Italian  supplies  are  inadequate. 
Although  the  standard  of  living  is  modest,  there  are  still  some  re- 
serves of  almost  everything.  However,  it  must  be  considered  likely 
that  Italy  will  be  confronted  by  new  problems  within  half  a  year  be- 
cause the  reserves  are  slowly  being  exhausted. 

IV.  German- Japanese  Cooperation; 

In  accordance  with  the  present  policy  of  close  cooperation,  and  in 
view  of  the  European  repercussions  of  the  occupation  of  Timor  by 
the  Australians  and  the  Dutch,  the  Japanese  Naval  Attache  informed 
the  Chief,  Operations  Division,  Naval  Staff  that  the  Japanese  are 
not  planning  to  take  any  countermeasures  at  present  and  asked  for 
our  opinion.  The  Chief,  Operations  Division,  Naval  Staff  first  of 
all  welcomed  this  information  and  the  inquiry  as  proof  that  the 
Axis  navies  are  coordinating  their  strategic  and  operational  think- 
ing as  essentially  desirable.   He  pointed  out  that  the  Japanese 
opinion  that  there  Is  no  military  or  strategic  obligation  to  at- 
tack Timor  is  fortunate  in  view  of  possible  repercussions  in  Europe. 


Situation  21  Dec.  19^1 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation; 

North  Atlantic ; 

On  21  Dec.  the  RENOWN  was  located  northwest  of  the 
Hebrides  proceeding  in  the  direction  of  Iceland.  At  the  same 
time,  the  RODNEY  was  presumably  proceeding  from  Iceland  to  north- 
ern Scotland. 

South^Atlantlc ; 

The  INDOMITABLE  is  presumably  located  somewhere  between 
Trinidad  and  the  Cape  of  Good  Hope.  A  press  report  from  Buenos 
Aires  states  that  the  U.S.  is  expected  to  propose  at  the  confer- 
ence in  Rio  de  Janeiro  that  all  American  countries  make  their 
navies  available  for  a  convoy  system,  to  be  set  up  within  western 


_2i4-  9862 


21  Dec.  1941  CONFIDENTIAL 

territorial  waters. 

Indian  and  Pacific  Ocean; 

On  16  Dec,  convoy  BA  11  departed  from  Bombay  en  route 
to  Aden.   On  18  Dec,  the  U.S.  radio  station  on  Mary  Island  broad- 
cast directives  to  all  U.S.  merchantmen  concerning  procedures  to 
be  followed  when  sailing  the  Columbia  River  and  the  Strait  of  Juan 
de  Fuca.  ' 

2.   Own  Situation: 

The  Naval  Attache  at  Tokyo  forwarded  the  brief  report 
which  the  KULMERLAND  received  from  ship  "41"  the  middle  of  Octo- 
ber and  brought  to  Tokyo.  According  to  this  report,  the  auxiliary 
cruiser  was  located  between  Colombo  and  Sabang  on  1?  June  1941  and 
was  ready  to  proceed  into  the  Bay  of  Bengal  when  she  encountered 
an  enemy  auxiliary  cruiser  24  June  and  had  to  give  up  this  plan. 
On  26  June  she  sank  the  Yugoslav  steamer  VELEBIT  and  the  Australian 
steamer  MARAWA.  Prom  17  July  on  ship  "41"  operated  in  the  area  be- 
tween Sumatra,  Java,  and  the  northwestern  corner  of  Australia,  from 
11  Sept.  on  she  operated  in  the  area  between  the  Maldive  Islands, 
Chagos  Archipelago,  and  the  Seychelle  Islands,  where  she  sank  the 
Greek  steamer  STAMATIOS  G.  EMBIRIOS  on  23  Sept..   On  16  Oct.,  ship 
"4l"  met  the  KULMERLAND.  Her  engines  were  overhauled  in  the  middle' 
of  July  and  September.  Altogether  ship  "4l"  sank  eleven  enemy  ships 
totalling  68,283  BRT.  The  commandant  of  the  auxiliary  cruiser 
states  in  his  estimate  of  the  situation  that  enemy  naval  forces  ef- 
fectively keep  enemy  shipping  from  sailing  within  unprotected  waters 
so  that  a  merchant  raider's  chances  for  sinking  vessels  are  slight. 
In  spite  of  this  however,  the  indirect  effects  seem  to  warrant  that 
an  auxiliary  cruiser  be  on  duty  in  the  operational  areas  of  ship 
"41". 

On  the  basis  of  the  new  situation  resulting  from  the  U.S.  and  Japan 
entering  the  war,  the  Naval  Staff,  Operations  Division  has  revised 
the  "Directives  for  the  Conduct  of  the  War  against  Merchant  Ship- 
ping".  The  most  notable  changes  are  as  follows: 

"1.  Ships  of  the  United  States  and  all  her  allies  are  to  be 
treated  as  enemies. 

"2.  All  limitations  in  the  blockade  areas  have  been  rescinded 
(with  exception  of  shipping  to  and  from  Sweden). 

"3.  The  Pan-American  safety  zone  is  no  longer  to  be  honored. 

"4.  Not  only  completely  blacked-out  ships,  i.e.,  ships  pro- 
ceeding with  extinguished  running  lights,  are  from  now  on  to  be 
considered  blacked-out,  but  also  ships  proceeding  with  their  run- 
ning  lights  burning  but  without  lighted  neutrality  markings." 

See  War  Diary  Files  "Directives  for  the  Conduct  of  the  War  against 
Merchant  Shipping"  for  a  copy  of  the  revised  edition  as  per  1/Skl 
I  ia  28708/41  Gkdos.  Reports  on  the  Enemy  Situation  sent  by  .Radio- 
grams 1609,  1709,  2011,  and  2347. 


-215-  9862 


21  Dec.  19^1  CONFIDENTIAL 

II.   Situation  West  Area 

1.  Enemy  Situation; 

Air  reconnaissance  located  eight  steamers  and  one  tanker 
off  Lizard  Head,  three  steamers  off  Falmouth,  and  four  steamers  of 
various  sizes  off  Plymouth.  During  the  evening,  radio  monitoring 
intercepted  urgent  code  signals  from  Harwich,  presumably  reports  on 
locations  of  German  PT  boats  and  reports  from  patrols  around  Lowe- 
stoft concerning  the  sighting  of  unidentified  vessels. 

2.  Own  Situation: 

Atlantic  Coast; 

The  departure  of  ship  "10",  which  has  in  the  meantime 
proceeded  from  Le  Havre  to  Bordeaux,  and  the  departure  of  the 
tanker  BENNO  are  scheduled  for  22  Dec. 

Admiral,  France  reports  that  the  anti-aircraft  defenses  of  Brest 
have  been  strengthened  considerably  during  the  last  few  days.  The 
very  considerable  total  of  anti-aircraft  artillery  defenses  now 
comprise  thirty  four  heavy  and  twenty  two  light  anti-aircraft  ar- 
tillery batteries  and  nine  searchlight  batteries.   The  pursuit  de- 
fenses now  comprise  six  squadrons,  which  means  that  all  available 
forces  within  the  area  of  the  3rd  Air  Force  have  been  committed  to 
the  defense  of  Brest.   Thus  the  anti-aircraft  artillery  and  pursuit 
plane  protection  is  stronger  than,  for  example,  that  of  Wilhelm- 
shaven.   However,  the  absence  of  night  pursuit  facilities  consti- 
tutes a  gap  in  the  defenses.   It  will  take  three  to  four  months  to 
remedy  this  situation.   Temporary  measures  for  flying  night  pursuit 
missions  are  not  possible  according  to  the  3rd  Air  Force.  A  further 
reinforcement  of  the  anti-aircraft  artillery  defenses  would  have  to 
come  from  Navy  resources  in  other  areas.   However,  the  Naval  Staff 
does  not  consider  such  action  necessary  aside  from  the  fact  that 
the  required  materiel  is  not  available  elsewhere.  For  the  report 
from  Admiral,  France  see  Radiogram  1400. 

Channel  Coast; 

During  the  evening,  the  2nd  and  4th  PT  Flotillas  went  on 
torpedo  and  minelaying  missions  in  the  area  between  Great  Yarmouth 
and  Orfordness. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 
Nothing  to  report. 

2.  Norway; 

Enemy  Situation; 

No  new  reports  have  been  received. 


-216-  9862 


21  Dec.  19^1  CONFIDENTIAL 

Own  Situation; 

The  steamer  ELMSH6RN  (4,301  BRT)  was  torpedoed  by  an  enemy 
submarine  In  the  entrance  to  the  Varanger  Fjord.   It  Is  kept  afloat 
by  its  cargo  of  wood  and  Is  drifting  In  a  southerly  direction.   The 
crew  abandoned  ship.   The  harbor  patrol  vessel  STEINBOCK  sank  when 
the  weather  became  worse.  A  bomb  Inflicted  light  damage  on  the 
steamer  MAGDALENA  VINNEN  off  Stadland. 

After  receiving  the  battle  reports  of  all  of  Its  destroyers,  the 
8th  Destroyer  Flotilla  reports  that  one  enemy  destroyer  was  defi- 
nitely sunk  and  that  it  may  be  assumed  with  certainty  that  the 
second  one  also  sank  (see  Radiogram  2300). 

Radiogram  1310  from  the  Commanding  Admiral,  Norway  reports  that  a 
rumor  is  circulating  in  Harstad  to  the  effect  that  American,  Cana- 
dian, and  British  troops  will  land  in  northern  Norway  during  the 
Christmas  holidays.  Little  credence  should  be  given  to  this  rumor 
although  it  has  found  remarkably  wide  circulation. 

In  view  of  the  necessity  for  alleviating  the  convoy- situation  along 
the  Arctic  Coast  by  transferring  an  additional  minesweeper  flotilla 
to  that  area,  Group  North  inquired  on  13  Dec.  whether  sweeping  a 
mine- free  channel  to  Helsinki  can  be  delayed,  whether  the  convoy 
situation  along  the  Arctic  Coast  is  very  urgent  and  necessitates 
the  immediate  transfer  of  a  minesweeper  flotilla,  or  whether  the 
operations  conducted  by  Group  West  are  of  such  importance  that  it 
is  altogether  impossible  to  spare  a  minesweeper  flotilla  for  the 
Commanding  Admiral,  Norway.  This  problem  has  become  all  the  more 
urgent  since  the  3rd  Minesweeper  Flotilla  must  be  overhauled  after 
it  has  been  relieved  by  the  15th  Minesweeper  Flotilla,  and  the  Com- 
mander, Minesweepers  could  transfer  the  4th  Minesweeper  Flotilla  to 
Norway  only  at  the  expense  of  foregoing  the  sweeping  of  a  channel 
west  of  Dagoe.  Any  further  reduction  of  the  forces  under  Command - 
ing  Admiral,  Defenses,  North  and  Commanding  Admiral,  Defenses,  East 
cannot  be  tolerated,  however. 

The  Naval  Staff  took  a  stand  on  this  matter  on  16  Dec.  and  decided 
that  it  is  at  present  impossible  to  transfer  further  reinforcements 
to  Norway.   (See  War  Diary  16  Dec,  Own  Situation,  Baltic  Sea.) 
However,  the  Naval  Staff  believes  that  the  priority  rating  of  op- 
erations in  the  Arctic  Ocean  area  should  be  reviewed  in  view  of  the 
shortage  of  minesweepers  and  defense  forces.   It  is  the  opinion  of 
the  Naval  Staff  that  escort  service,  submarine  chase  and  minesweep- 
ing  operations  are  more  urgent  than  the  laying  of  mine  fields  (in- 
cluding the  mine  field  in  Petsamo  Fjord)  since  the  latter  are  only 
of  limited  value  for  the  protection  of  convoys. 

The  Commanding  Admiral,  Norway  is  advised  accordingly.  Group  North 
informed . 

3.   Arctic  Ocean; 

The  Commanding  Admiral,  Submarines  believes  that  a  sub- 
marine staff  officer  should  be  detailed  to  the  Admiral,  Arctic 


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21  Dec.  19^1  :::.t~z:.t  :.-•.! 

Ocean  for  as  long  as  submarines  are  operating  within  that  area. 
The  Naval  Staff  welcomes  this  suggestion. 


IV.   Submarine  Warfare 

1.  Enemy  Situation: 

A  Spanish  report  states  that  the  British  steamer  OGMORE 
CASTLE  and  the  tankers  3RITISH  CONSUL  and  VELMA  were  sunk  out  of 
convoy  HG  77.  According  to  an  Italian  report,  on  19  Dec.  a  Brit- 
ish destroyer  is  said  to  have  landed  at  Gibraltar  forty  nine  Ger- 
man prisoners  of  war  from  two  submarines  that  had  been  sunk.  An 
intelligence  report  states  that  two  specially  small  patrol  vessels 
or  submarine  chasers  camouflaged  as  Spanish  fishing  steamers,  are 
now  operating  in  the  Gibraltar  area.  At  noon,  radio  monitoring 
intercepted  a  report  from  an  airplane  telling  of  a  bomb  attack  on 
a  submerging  submarine  east  of  Gibraltar,  and  it  is  assumed  that  a 
hit  was  scored.  During  the  evening,  radio  monitoring  intercepted 
an  order  to  a  plane,  repeatedly  given,  that  it  attack  a  submarine 
proceeding  east  of  Ceuta. 

2.  Own  Situation: 

Contact  was  maintained  with  convoy  HG  77  which  has 
reached  a  point  near  kj>°   N.   Two  submarines  setting  out  on  mis- 
sions have  also  encountered  the  convoy.  At  2300,  submarine  U  "751" 
scored  three  hits  on  an  aircraft  carrier  which  it  reported  to  be 
of  the  FORMIDABLE  class.   It  is  highly  probable  that  the  aircraft 
carrier  sank,  but  enemy  interference  prevented  further  observation. 
About  an  hour  later,  submarine  U  "67"  reported  an  unsuccessful  at- 
tack on  aircraft  carrier  UNICORN. 

See  War  Diary,  Part  B,  Vol.  IV  for  a  detailed  report  on  the  situa- 
tion.  The  Commanding  Admiral,  Submarines  reports  that  according 
to  a  special  source,  apparently  a  letter  from  a  prisoner  of  war 
camp,  secret  material,  codes,  and  recognition  signals  of  submarine 
U  "570"  were  destroyed. 


V.   Aerial  Warfare 

1.  British  Isles  and  Vicinity: 
Nothing  to  report. 

2.  Mediterranean  Theater: 

An  attack  by  eight  bombers  on  the  British  vessel  lying 
at  Valetta  and  tentatively  identified  as  a  battleship,  scored  no 
direct  hits. 

For  reports  by  reconnaissance  see  Enemy  Situation,  Mediterranean. 


-218-  9862 


21  Dec.  1941  CONFIDENTIAL 

j5.   Eastern  Front; 

Nothing  to  report. 


VI.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation: 
Western  Mediterranean: 
Nothing  to  report. 

Central  and  Eastern  Mediterranean: 

In  the  afternoon  of  20  Dec,  German  aerial  reconnaissance 
reported  sighting  two  battleships  lying  at  Valetta.  An  Italian  re- 
port of  the  morning  of  21  Dec.  confirmed  this.  The  Italian  Navy 
assumes  that  one  battleship  and  one  heavy  cruiser  are  involved. 
Aerial  photography  evaluation  by  the  X  Air  Corps  of  21  Dec.  shovs 
that  the  four  vessels  which  had  been  sighted  off  Alexandria  on 
20  Dec.  were  destroyers,  not  cruisers.   It  is  altogether  impossi- 
ble to  expect  aerial  reconnaissance  to  determine  types  of  vessels 
with  absolute  accuracy,  and  therefore  one  cannot  be  absolutely 
sure  that  the  ship  lying  at  Valetta  is  actually  a  battleship.  No 
naval  vessels  or  merchantmen  were  reported  sighted  on  21  Dec. 
On  20  Dec,  Italian  radio  monitoring  intercepted  messages  of  an 
encounter  between  a  submarine  and  a  cruiser  off  Alexandria  and  the 
subsequent  arrival  of  the  cruiser  at  the  port. 

2.  Own  Situation: 

The  3rd  PT  Flotilla  performed  no  missions  because  of  the 
weather . 

3.  Situation  Italy: 

A  belated  report  from  the  Italian  Navy  states  that  the 
submarine  BAGABUR  scored  three  torpedo  hits  on  a  British  cruiser 
near  Malta  on  14  Dec.   It  is  believed  certain  that  the  cruiser 
was  sunk.  According  to  a  report  from  the  Naval  Supply  and  Trans- 
port Office  at  Tripoli,  an  enemy  air  raid  at  noon  caused  no  mili- 
tary damage.  The  report  on  the  situation  from  the  Italian  Navy 
contains  a  belated  description  of  events  on  17  and  18  Dec.   The 
report  states  that  a  brief  engagement  took  place  between  the  Italian 
naval  force  and  an  enemy  force  consisting  of  a  battleship,  four 
cruisers,  as  well  as  twelve  torpedo  carriers.    The  engagement 
was  interrupted  by  darkness.  During  the  subsequent  engagement  with 
enemy  destroyers,  one  destroyer  was  sunk  by  the  GORIZIA  and  another 
one  badly  damaged  and  probably  sunk  by  Flotilla  MAESTRALE.  During 
the  evening  of  18  Dec,  enemy  bombers  and  torpedo  planes  attacked 
the  Italian  convoy  off  Tripoli.   The  steamer  NAPOLI  was  damaged  dur- 
ing the  raid  but  nevertheless  towed  into  Tripoli. 


-219- 


21  Dec.  19^1  CONFIDENTIAL 

An  Italian  report  states  that  the  enemy  has  occupied  Derna.   Accord- 
ing to  a  report  from  the  Naval  Supply  and  Transport  Office,  North 
Africa,  the  evacuation  and  destruction  of  Benghazi  is  under  way. 
All  offices  of  the  Army  and  the  Air  Force  have  already  left.  Lieu- 
tenant Meixner  is  supposed  to  move  to  Ras  el  Aali  during  the  night 
of  21  Dec.  or  the  morning  of  22  Dec.  after  the  last  vehicles  have 
been  dispatched  and  destruct:  on  of  harbor  installations  is  completed 
(see  Radiogram  2100). 

4.  Transport  of  Supplies  to  North  Africa: 

One  more  destroyer  arrived  at  Benghazi  on  20  Dec.   Since 
20  Dec.  three  transport  submarines  are  en  route  to  Benghazi  or 
Bardia. 

5.  Area  "aval  Group  South: 
Aegean  Sea; 

Enemy  Situation: 

Reports  state  that  submarines  vere  sighted  in  the  Gulf  of 
Mirabella  (Crete)  and  off  Candia,  but  the  same  submarine  vas  prob- 
ably involved  in  both  instances. 

Own  Situation: 

Describing  the  torpedo  boat  situation  in  his  command 
area,  the  Admiral,  Aegean  proposes  that  the  two  or  three  torpedo 
boats  under  his  command  which  are  fit  for  duty  be  used  only  for 
transporting  supplies  destined  for  Korth  Africa  from  Greece  to 
the  relay  station  at  Suda.   There  the  supplies  should  be  transferred 
onto  destroyers  under  the  command  of  the  Supermarina  at  Rome  and 
taken  to  Africa  (see  Radiogram  033*0  • 

Land  batteries  fired  tventy  seven  rounds  at  an  enemy  submarine  off 
Candia . 

Black  Sea: 

Enemy  Situation: 

Reports  from  agents  state  that  approximately  sixty  cut- 
ters and  allegedly  eight  smaller  naval  vessels  are  lying  at  Temryuk 
ready  to  land  about  2,000  men  north  of  Kerch.   The  XXX  Army  Corps 
expects  enemy  troop  landings  by  about  five  ships  20  km.  east  of 
Balaklava. 

Cwn  Situation: 

The  only  way  in  which  the  Navy  could  interfere  in  enemy 
landing  attempts  at  this  time  is  using  submarine  DELFIKUL.   How- 
ever, this  submarine  is  not  fit  for  duty  right  now  and  its  crew  is 
not  trained  for  such  an  operation. 

Otherwise  nothing  to  report. 


9862 

-220- 


» 


21  Dec.  1941  CONFIDENTIAL 

VII.  Situation  East  Asia 

1 .  Enemy  Situation; 

For  data  on  the  mine  field  east  of  Singapore  harbor  see 
Radiogram  1930. 

2.  Situation  Japan; 

According  to  a  report  from  the  German  Ambassador  at  Tokyo, 
the  Japanese  consider  the  situation  on  the  Philippines  already  under 
control.  A  report  from  the  Military  Attache  at  Bangkok  of  17  Dec. 
states  that  Japanese  plans  are  as  follows;   Conquest  of  Hong  Kong  by 
Japanese  Canton  Army;   simultaneous  occupation  of  the  Philippines  by 
the  army  under  Homma;   advance  into  southern  Malaya  and  attack  on 
Singapore  by  the  army  under  Yamashita;   penetration  of  Burma  and  ad- 
vance on  Rangoon  by  the  army  under  Jida.   Furthermore,  if  after  com- 
pletion of  these  operations  no  agreement  can  be  reached  with  the 
Dutch  peacefully,  it  is  planned  to  attack  Sumatra,  Dutch  Borneo, 
and  Java.  An  attack  on  Australia  and  India  is  thought  of  as  the 
next  step.   Operations  are  proceeding  as  planned  according  to  the 
reliable  source  of  the  above  information,  Colonel  Ishii.   The  only 
cause  for  worry  is  interference  with  transport  operations  by  enemy 
submarines.   Ship  losses  amount  to  k<?o   so  far.   The  Americans  show 
less  fighting  spirit  than  the  British,  who  fight  doggedly  and  ten- 
aciously. 


VIII.  Army  Situation 

1 .   Russian  Front; 

Southern  Army  Group: 

Fighting  in  the  Crimea  was  characterized  by  enemy  counter- 
attacks which  were  repulsed  everywhere,  greater  effectiveness  of 
enemy  artillery  through  use  of  naval  artillery,  and  enemy  landing 
attempts.   A  local  enemy  attack  was  repulsed  on  the  sectors  of  the 
1st  Panzer  Army,  the  17th  Army,  and  the  6th  Army.   Furthermore  ar- 
tillery activity  on  other  sectors. 

Central  Army  Group; 

The  2nd  Army  was  again  subjected  to  strong  enemy  attacks 
which  led  to  new  penetrations.   The  XLVII,  LIII,  and  XXIV  Army 
Corps  withdrew  to  the  Sabino-Gorbachevo-Odoyevo  Line.   The  enemy 
followed  up  without  launching  an  attack.  Also  the  4th  and  9th 
Armies  were  subjected  to  severe  enemy  attack.   The  situation  near 
Mozhaisk  is  very  critical.   The  new  positions  of  the  XXVII  and  VI 
Army  Corps  south  of  Kalinin  were  exposed  to  heavy  enemy  attacks. 

Northern  Army  Group; 

Under  continuous  enemy  pressure,  the  position  of  the  XXIX 
Army  Corps  must  be  withdrawn  to  the  Volkhov  River. 


9962 

•221- 


21  Dec.  19^1  C0HFIE5NTIAL 

2.   Finnish  and  Norwegian  Front: 

No  change  in  the  situation. 

?.   North  Africa; 

The  German  Afrika  Korps  continued  its  march  in  the  Agedabia 
area.  Withdrawal  movements  on  the  XXI  and  X  Italian  Army  Corps  sec- 
tors are  proceeding  according  to  plan.   The  fuel  situation  limited 
the  fighter  escorts  of  the  Air  Force  on  21  Dec. 

*******•*»*****»♦♦♦***♦*** 


»862 


222- 


CONFIDENTIAL 

22  Dec.  19^1 

Items  of  Political  Importance 

Spain : 

See  Political  Review  No.  300,  Paragraph  j5  for  Spanish  reaction  to 
the  Japanese  occupation  of  the  Philippines  in  view  of  the  high  per- 
centage of  Spaniards  living  in  the  Islands. 

Ecuador : 

Contradictory  reports  have  been  received  concerning  the  Galapagos 
Islands.  Some  state  that  the  U.S.  is  about  to  occupy  the  islands 
while  others  maintain  that  U.S.  pressure  in  connection  with  recent 
developments  in  the  Pacific  is  letting  up. 

U.S.A.! 

Admiral  Ernest  King,  until  now  Chief  of  the  U.S.  Atlantic  Fleet, 
has  been  named  Commander  In  Chief  of  the  U.S.  Fleet.  Through  a 
statement  by  the  Department  of  State  concerning  the  Martinique 
Agreement,  it  has  become  known  that  Roosevelt  sent  a~ message  to 
the  French  High  Commission  assuring  them  that  French  sovereignty 
will  not  be  jeopardized.  The  U.S.  is  only  interested  in.  maintain- 
ing friendly  relations  with  France,  but  must  also  be  concerned  about 
its  own  safety. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

The  Naval  Staff,  Quartermaster  Division,  Plans  and  Schedules 
Branch  (All)  reports  how  the  Fuehrer  directive  to  transfer  unes- 
sential German  troops  out  of  the  Rumanian  area  is  being  carried  out, 
and  gives  reasons  showing  that  it  might  be  appropriate  to  change 
the  title  of  the  Commanding  Admiral,  Naval  Mission  in  Rumania  to 
"Admiral,  Black  Sea"  in  view  of  the  actually  purely  operative  mis- 
sion of  this  command.  The  Chief,  Naval  Staff  endorses  this  propo- 
sal.  It  seems  that  the  Armed  Forces  High  Command  is  planning  to 
place  the  Navy  forces  remaining  in  Rumania  under  Army  command,  but 
the  Chief,  Naval  Staff  decides  that  any  such  move  must  be  rejected. 
The  Chief,  Operations  Division,  Naval  Staff  reports  on  the  confer- 
ence with  the  Japanese  Naval  Attache,  Captain  Yokoi  (see  War  Diary 
21  Dec). 

The  conflicting  political  and  military  viewpoints  became  very  ap- 
parent during  the  discussion  of  the  announced  Japanese  intentions 
to  annex  bases  on  Madagascar  and  to  launch  from  them  operations 
against  enemy  shipping.  Although  from  a  military  point  of  view  it 
would  certainly  be  advantageous  if  the  enemy's  life-line  were  at- 
tacked and  disrupted  at  this  vit$l  point,  the  political  consequen- 
ces of  such  a  step  on  the  part  of  the  Japanese,  i.e.,  an  unfavorable 
effect  on  Franco- German  relations  and  an  expansion  of  the  yellow 


9862 

-223- 


22  Dec.  19^1  CONFIDENTIAL 

sphere  of  influence  far  beyond  70°  E  toward  the  west,  are  of  such 
importance  that  it  seems  wise  to  work  very  definitely  against  this 
Japanese  intention.   In  this  connection,  the  Chief  of  Staff,  Naval 
Staff  emphatically  points  out  the  grave  danger  which  will  arise  if 
the  Japanese  annexation  of  Madagascar  arouses  a  reaction  in  French 
Vest  and  North  Africa  which  consequently  will  make  it  impossible 
to  regain  and  maintain  German  and  Italian  control  over  the  Mediter- 
ranean. 

The  Naval  Staff,  Operations  Division,  Political  and  Propaganda  Sec- 
tion reports  that  an  apology  has  been  forwarded  to  the  Spanish 
Government  concerning  the  sinking  of  the  steamer  BADALONA  by  the 
German  Air  Force.   The  Chief,  Naval  Staff  once  more  points  to  the 
significance  of  the  naval  vessels  at  Brest,  the  importance  of  which 
is  now  greater  than  ever  as  the  result  of  the  new  situation  and  the 
protection  of  which  against  the  extraordinary  threat  from  enemy  air 
forces  constitutes  a  military  problem  of  prime  importance.   The  ar- 
tillery and  smoke  screen  defenses  should  be  adequate.   In  order  to 
provide  defense  against  high  altitude  enemy  planes,  it  is  ordered  that 
the  Commander  in  Chief,  Air  be  notified  of  the  necessity  for  attack- 
ing enemy  air  bases. 


Situation  22  Dec.  19*H 

I.   Var  in  Foreign  Waters 

1.   Enemy  Situation: 

The  ILLUSTRIOUS  was  located  in  the  immediate  vicinity  of 
the  British  Isles,  and  the  SUFFOLK  in  the  Rosyth  area.  According 
to  Reuter,  the  U.S.  Navy  Department  announced  the  creation  of  a 
sea  frontier  system  involving  the  areas  of  thirteen  harbors  and 
important  shipping  routes  along  the  east  and  west  coasts.  All  ship- 
ping within  those  areas  will  be  under  Navy  control.   The  following 
harbors  are  concerned:   Portland,  Maine;   Portsmouth,  New  Hampshire; 
Boston;  Narragansett  Bay,  Rhode  Island;   San  Diego;   San  Francisco; 
the  mouth  of  the  Columbia  River  and  the  Strait  of  Juan  de  Fuca; 
Puget  Sound,  Washington;  New  London;  New  York  Harbor;  Delaware 
Bay  and  Chesapeake  Bay;  Norfolk,  Virginia,  and  the  harbor  of 
Charleston,  South  Carolina.   The  Navy  Department  announced  that 
publication  of  weather  reports  would  be  restricted.  According  to 
Associated  Press,  the  White  House  is  considering  the  creation  of 
an  Inter-American  convoy  system  in  which  naval  vessels  of  the  South 
American  States  are  to  participate. 

South  Atlantic : 

The  INDOMITABLE  was  supposed  to  leave  Trinidad  on  17  Dec. 
and  if  possible  proceed  to  the  Cape  of  Good  Hope  area  via  05°  N 
47°  W,  03°  40'  S  17°  20'  W,  38°  S  16°  30'  E,  37°  S  27°  E,  and  32° 
30'  S  31°  001  E.   On  16  Dec.  the  following  vessels  were  at  sea  on 
patrol  duty:  Auxiliary  cruiser  WOLFE  between  20°  and  30°  S,  0°  and 
10°  W;   the  BUL0L0  between  20°  and  30°  S,  30°  W  to  the  South  Ameri- 
can coast;   the  ASTURIAS  in  the  Bahia  area.   On  16  Dec.  the  cruiser 


9862 

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22  Dec.  19^1  CONFIDENTIAL 

BIRMINGHAM  was  located  at  about  26°  S  20°  ¥   headed  for  La  Plata. 
On  17  Dec.  two  vessels  coming  from  the  south  arrived  at  Simon's 
Town  (Cape  of  Good  Hope).   On  18  Dec.  the  BORNEO  and  SOUTHWORLD 
were  reported  leaving  Durban  for  Klllndini  (Kenya). 

Indian  Ocean: 

On  7  Dec.  the  French  steamer  ST  JAQUES  left  Bombay  en 
route  to  Basra  loaded  with  troops  and  materiel.   For  points  en 
route  see  daily  situation  reports. 

Pacific  Ocean: 

The  order  to  make  for  the  nearest  port  was  rescinded  by  a 
radiogram  sent  to  all  U.S.  ships  in  the  Pacific  by  the  Commanding 
Admiral  of  the  12th  Naval  District. 

2.   Own  Situation: 

Radiogram  2046  was  sent  to  all  concerned,  informing  that 
code  word  order  "Perseus"  for  cipher  "Triton"  and  "Heimisch"  will 
no  longer  be  effective  beginning  26  Dec.  All  concerned  informed 
about  the  situation  in  East  Asia  by  Radiogram  0523;   about  the  en- 
emy situation  by  Radiogram  1815. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

According  to  aerial  reconnaissance,  a  convoy  made  up  of 
twelve  steamers  escorted  by  a  cruiser  and  two  escort  vessels  was 
located  south  of  Milford,  course  100°.  Two  cruisers  and  one  de- 
stroyer were  located  on  southwesterly  course  south  of  Queenstown. 
Long-range  reconnaissance  located  convoy  HG  77  at  45°  20'  N,  20° 
20'  W  on  northerly  course.  The  convoy  was  made  up  of  twenty  six 
steamers  escorted  by  a  cruiser,  two  destroyers,  and  four  or  five 
escort  vessels.   One  FW  200  is  missing  from  the  long-range  recon- 
naissance forces  of  21  Dec. 

2.  Own  Situation: 

Atlantic  Coast: 

The  tanker  BENN0  departed  from  St.  Nazaire.  Auxiliary 
cruiser,  ship  "10"  departed  from  Bordeaux.  Security  measures  for 
both  vessels  were  executed  according  to  plan.  Long-range  recon- 
naissance missions  are  planned  for  23  Dec.  depending  on  the  posi- 
tion of  the  convoy. 

The  Naval  Staff  wonders  whether  departure  of  the  two  vessels  was 
not  premature  in  view  of  the  position  of  convoy  HG  77  >  especial- 
ly since  the  weather  forecast  leads  us  to  expect  high  barometric 
pressure  with  visibility  ranging  from  good  to  fair. 


9862 

-225- 


22  Dec.  19*1  CONFIDENTIAL 

Channel  Coast: 

?he   r.rinelaying  mission  of  the  2nd  and  4th  PT  Flotillas 
was  executed  according  to  plan.  Weather  conditions  prevented  tor- 
pedo attacks . 


Ill,  "orth  Sea,  Norway,  Arctic  Ocean 
1.   North  Sea: 


Znerr.y  Situation: 


No  special  observations.   Convoy  FS  78  entered  the  Thames 

Ovn  Situation: 

From  1900  to  2300  enemy  planes  crossed  the  coast  near 
Terschelling  on  their  way  to  and  from  the  East  Frisia-V/eser  River 
area.   The  main  target  for  the  raids  was  Wilhelmshaven  where  four- 
teen high  explosive  and  sixty  incendiary  bombs  were  dropped.   One 
oil  storage  tank  in  the  Tirpitz  harbor  was  damaged.   One  of  the  at- 
tacking planes  was  shot  down  near  Norderney  by  Navy  anti-aircraft 
artillery. 

2.   Norway : 

Enemy  Situation: 

Aerial  reconnaissance  identified  the  enemy  force  located 
northeast  of  Kola  Bay  as  comprising  one  destroyer  and  two  escort 
vessels  escorting  a  4,000  BRT  steamer.   According  to  press  reports, 
the  Soviet  Government  has  decided  to  construct  two  new  ports  in  the 
Arctic  Ocean,  to  be  called  Noviport  and  Igarka,  in  the  mouths  of 
the  0b  and  the  Yenisei  Rivers  respectively.   These  ports  will  serve 
to  receive  the  increased  shipments  of  war  materiel  during  the  sum- 
mer of  19^2. 

Own  Situation: 

Salvage  operations  on  the  steamer  ELMSH0RN  (cargo: 
Barracks  for  Petsamo)  and  attempts  to  scuttle  her  by  artillery 
shelling  were  unsuccessful,  partly  because  of  weather  conditions, 
partly  because  of  buoyancy  of  the  cargo. 

The  departure  of  submarines  U  "134",  U  "454",  and  U  "584"  for  their 
respective  zones  of  operation  is  planned  for  25  Dec.  A  Norwegian 
steamer  arriving  at  Honningsvaag  was  unsuccessfully  fired  at  by  an 
enemy  submarine.   Torpedoes  exploding  on  the  rocks  Lnflicted  heavy 
damage  to  the  signal  station  but  caused  no  casualties.   Mine-ex- 
ploding vessel  "139"  detonated  six  ground  mines  in  the  harbor  of 
Oslo.  Because  the  mine-exploding  vessel  sustained  heavy  damage 
during  the  operation,  further  clearing  operations  had  to  be  tem- 
porarily discontinued  and  the  endangered  area  closed  to  shipping. 


9862 

-226- 


♦ 


22  Dec.  1941  CONFIDENTI.'lL 

The  coastal  batteries  in  the  Narvik  area  have  been  ordered  to  he 
ready  for  action  on  shorter  notice  beginning  21  Dec.  in  view  of 
the  current  rumors  about  an  irar.iinent  enemy  landing.   Group  North 
makes  the  following  appropriate  comment  concerning  these  rumors 
which  had  been  reported  by  the  Commanding  Admiral,  Norway  (see  War 
Diary  21  Dec):   Even  though  it  is  very  unlikely  at  this  time 
that  any  of  the  rumors  concerning  enemy  landings  are  true,  and 
though  it  is  unlikely  that  large-scale  operations  against  northern 
Norway  will  be  launched  in  view  of  the  probability  that  they  will 
be  repulsed,  there  is  an  increasing  possibility  that  the  enemy  will 
try  to  gain  prestige  by  staging  surprise  raids  and  achieving  quick 
successes  in  view  of  growing  difficulties,  such  as  defeat  in  the 
Pacific." 


IV.   Skagerrak,  Baltic  Sea  Entrance 3 y  Baltic  Sea : 

Bad  weather  forced  coastal  patrol  vessels  in  the  Skagerrak  to  seek 
shelter  near  Skagen.   Five  of  our  own  and  four  British  nines,  as 
well  as  three  explosive  floats,  were  detonated  eight  miles  north 
of  Skagen.  Three  steamers  left  Stettin  on  22  Dec.  in  order  to 
transfer  the  3rd  Mountain  Division  from  Vasa. 

Concerning  the  transfer  of  an  infantry  division  from  East  Prussia 
to  Riga  and  Reval  between  2"9  Dec.  and  10  Jan.,  an  agreement  has 
been  reached  with  the  Army  High  Command  and  the  Northern  Army  Group 
whereby  half  of  the  troops  are  to  be  shipped  to  Reval  and  the  other 
half  to  Riga.   Group  North  received  the  order  to  provide  an  ade- 
quate convoy  for  the  transport  of  the  troops  to  Reval.   This  mis- 
sion has  priority  over  all  others,  including  the  establishment  of 
a  deep  water  channel  to  Reval  and,  if  necessary,  also  the  coastal 
patrols  in  the  Skagerrak.   The  Army  High  Command  is  willing  to 
take  the  responsibility  for  later  effects  on  troop  and  supply  ship- 
ments resulting  from  a  delay  in  establishing  a  deep  water  channel 
to  Reval.   Transportation  details  will  be  arranged  between  the  In- 
fantry Division  and  Naval  Staff,  Quartermaster  Division,  Shipping 
and  Transportation  Branch  through  the  Supply  and  Transport  Office 
of  the  Armed  Forces  Overseas.  For  the  corresponding  order  to  Group 
North  see  Radiogram  l6l6.  Radiogram  1538  from  Group  North  reports 
that,  to  begin  with,  one  minesweeper  flotilla  will  be  alerted  and 
that  another  one  will  be  held  in  reserve. 


V.   Submarine  Warfare 


1.   Enemy  Situation: 


Intercepted  reports  from  enemy  planes  state  that  they 
sighted  submarines,  presumably  in  the  vicinity  of  convoy  HG  77* 
and  also  an  oil  spot  and  a  submarine  north  of  the  Saint  George's 
Channel;   a  British  vessel  was  located  approximately  eighty  miles 
northwest  of  Cape  Ortegal.  According  to  an  intelligence  report, 


9862 

-227- 


22  Dec.  19^1  CONFIDENTIAL 

a  convoy  was  expected  to  arrive  at  Lisbon  between  20  and  22  Dec. 
A  submarine  chase  was  reported  in  the  Gibraltar  area.  According 
to  an  intelligence  report,  a  Canadian  ship  with  a  damaged  bow,  iden- 
tified as  K  "196",  was  towed  into  Gibraltar. 

2.   Own  Situation: 


From  further  reports  from  submarine  U  "751"  about  the  at- 
tack on  the  aircraft  carrier  it  may  be  concluded  almost  with  cer- 
tainty that  the  aircraft  carrier  was  not  one  of  the  FORMIDABLE 
class  but  the  UNICORN  and  that  she  was  definitely  sunk.   On  the 
basis  of  subsequent  data  it  may  be  presumed  that  the  later  unsuc- 
cessful attack  by  submarine  U  68"  may  have  been  made  on  a  steamer 
equipped  with  a  catapult.  According  to  further  reports,  the  steam- 
er which  was  torpedoed  in  convoy  HG  77  on  19  Dec.  sank.  Contact 
with  the  convoy  was  maintained.  For  a  further  situation  report  see 
War  Diary,  Part  B,  Vol.  IV. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

For  data  on  enemy  raids  in  the  Cuxhaven-Bremen  area  see 
Situation  North  Sea.  For  air  reconnaissance  reports  see  Situation 
West  Area.  Otherwise  nothing  to  report. 

2.  Mediterranean  Theater: 

Missions  were  flown  against  concentrations  of  enemy 
vehicles  in  the  Derna  area. 

3.  Eastern  Front: 

Support  of  Army  operations . 


VII.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation: 

German  aerial  photographic  reconnaissance  over  Valetta 
showed  two  cruisers,  one  auxiliary  cruiser,  six  destroyers,  ten 
submarines,  and  eight  steamers  lying  in  the  harbor.  No  battleship 
was  sighted.   Italian  air  reconnaissance  at  the  same  Hour  sighted 
one  large  auxiliary  cruiser,  three  cruisers,  six  destroyers,  nine 
submarines,  six  steamers,  and  one  tanker.  Air  reconnaissance  over 
the  eastern  Mediterranean  sighted  a  few  steamers  and  destroyers. 

2.  Situation  Italy: 

The  steamers  SPEZIA  and  CATAM0ST0  were  sunk  west  of 
Misurata  by  an  enemy  submarine.  According  to  a  Stefani  report 


9862 

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22  Dec.  19^1  CONFIDENTIAL 

on  the  naval  battle  north  of  the  Gulf  of  Sidra,  some  of  the  enemy 
vessels  were  hit  by  bombs  and  torpedoes  dropped  by  the  Italian 
planes  and  two  enemy  destroyers  were  hit  by  Italian  ship  artillery. 
One  of  the  destroyers  exploded,  while  the  other  was  already  sink- 
ing when  disappearing  into'  a  smoke  screen.  A  battleship  received 
several  direct  artillery  hits.  No  Italian  ships  were  damaged. 

The  German  Naval  Command,  Italy  has  not  reported  details  from  the 
situation  report  of  the  Italian  Navy  concerning  these  events,  par- 
ticularly the  hits  scored  on  the  enemy  battleship  and  the  sinking 
of  the  two  destroyers. 

3.  Transport  of  Supplies  to  North  Africa; 

The  steamer  PROBITAS  arrived  at  Tripoli  on  21  Dec.  with 
6,000  tons  of  foodstuffs.  Three  transport  submarines  are  en  route 
to  Bardia.  The  steamers  BROOK  and  ANKARA  have  left  Benghazi  en 
route  to  Tripoli. 

4.  Area  Naval  Group  South: 

Aegean  Sea; 

Radiogram  1405  from  the  Naval  Staff  states  that  the  German 
Naval  Command,  Italy  has  the  authority  to  assign  a  submarine  to 
Group  South  for  its  current  missions  in  the  Aegean.  The  convoy  of 
steamer  SIENA,  with  800  German  and  100  Italian  soldiers  aboard,  ar- 
rived at  Suda.  The  ship  is  scheduled  to  depart  again  for  Piraeus 
on  23  Dec.  together  with  three  troop  transports  carrying  300  men 
each,  two  steamers  with  Army  materiel,  and  three  empty  steamers. 
Minelaying  mission  "Barletta"  has  been  postponed  until  23  Dec.  be- 
cause of  the  weather. 

Black  Sea; 

According  to  a  report  from  Group  South,  air  reconnaissance 
reveals  nothing  to  substantiate  the  XXX  Army  Corps1  assumption  that 
the  enemy  will  attempt  a  landing  on  the  southern  coast  of  the  Cri- 
mea. Otherwise  nothing  to  report. 

5»   Situation  France; 

The  German  Naval  Command,  Italy  requests  that  the  Naval 
Staff  support  the  Italian  request  to  the  Armistice  Commission  that 
the  French  be  forbidden  to  chase  submarines  and  carry  on  submarine 
reconnaissance  In  the  western  Mediterranean.  The  Naval  Staff  Is 
also  asked  to  insist  that  the  French  do  not  chase  submarines  in 
their  own  territorial  waters.  Concerning  the  latter  point,  the  Ger- 
man Naval  Command,  Italy  requests  the  Naval  Staff  at  least  to  in- 
sist that  the  Axis  Powers  have  the  right  to  prohibit  anti-submarine 
operations  in  certain  French  territorial  waters  at  specified  times. 
See  War  Diary,  Part  C,  Vol.  XVI  for  a  copy  of  the  corresponding 
message  from  the  German  Naval  Command,  Italy,  as  per  l/Skl  29622/41 
Gkdos . 


986  2 

-229- 


22  Dec.  19^1  ,  CONFIDENTIAL 

VIII.  Situation  East  Asia 

1.  Enemy  Situation; 

The  aircraft  carrier  INDOMITABLE  is  en  route  from  the 
West  Indies  to  the  Indian  Ocean.  According  to  Reuter,  the  British 
auxiliary  cruiser  BANKA  was  lost.  Radio  station  Daventry  announced 
that  Dutch  East  Indian  air  forces  successfully  attacked  Japanese 
vessels  off  Miri  (Sarawak,  Borneo)  on  19  Dec.  and  allegedly  scored 
hits  on  one  cruiser.  According  to  DNB,  three  British  PT  boats 
were  destroyed  off  Hong  Kong  on  19  Dec.  According  to  a  Vichy  Tele- 
graphic Service  report,  two  Japanese  transports  are  said  to  have 
been  seriously  damaged  near  Legaspi  by  air  raids,  and  Dutch  East 
Indian  planes  are  said  to  have  sunk  two  Japanese  transports  en  route 
from  Korea  to  Borneo.  Reuter  further  reports  via  Rome  that  Japanese 
troops  landed  on  New  Guinea.   The  U.S.  tanker  EMIDIO  (6,912  BRT) 
was  sunk  off  the  coast  of  California. 

2.  Situation  Japan; 

According  to  Domei,  it  is  certain  that  the  Japanese  Navy 
sank  nine  enemy  submarines  so  far.   The  crew  of  one  submarine  was 
captured.  Large  Japanese  troop  contingents,  brought  by  four  trans- 
pprts,  landed  at  Davao  on  Mindanao  (Philippine  Islands).  Enemy  re- 
sistance was  crushed. 


IX.  Army  Situation 

1.  Russian  Front: 

Southern  Army  Group; 

Heavy  fighting  around  Sevastopol.   No  noteworthy  fighting 
on  the  other  Army  sectors  of  the  Group. 

Central  Army  Group: 

The  enemy  attack  which  has  lasted  three  weeks  so  far, 
with  twenty  two  divisions  and  five  brigades  against  eight  weak  di- 
visions of  the  2nd  Army  is  continuing,  and  forces  us  to  effect 
further  local  withdrawals.  At  the  4th  Army  sector,  the  enemy  pene- 
trated as  far  as  Kaluga.  At  the  4th  Panzer  Army  sector,  the  situa- 
tion is  as  critical  as  ever  because  of  supply  difficulties. 

Northern  Army  Group; 

Local  enemy  attacks  on  the  various  frontal  sectors  were 
repulsed.  We  were  able  to  wipe  out  local  enemy  penetrations  on 
the  Leningrad  front. 

2.  Finnish  and  Norwegian  Front; 

Enemy  attacks  on  the  Svir  front  and  south  of  Liza  Bay 
were  repulsed. 


9862 

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22  Dec.  1941 


CONFIDENTIAL 


3.   North  Africa; 

The  enemy's  intention  to  block  the  way  to  the  south  for 
our  troops  standing  near  Benghazi,  led  to  fighting  between  the 
German  Afrika  Korps  and  the  22nd  Guard  Brigade  advancing  into  the 
Saunnu  area  via  Andelat.  The  outcome  of  the  battle  has  not  yet 
been  reported.   Our  command  unit  was  transferred  to  Marsa  el  Brega, 


**#**#*#********»***♦**** 


k 


98  6  2 


-231- 


CONFIDENTIAL 
2J>   Dec.  1941 

Items  of  Political  Importance 

Great  Britain: 

According  to  foreign  reports  on  the  frame  of  mind  in  Parliamentary 
and  Government  circles  at  the  time  Parliament  was  called  into  ses- 
sion on  19  Dec,  nobody  denies  that  the  foundations  of  the  Empire 
are  gravely  threatened  for  the  first  time  since  the  outbreak  of 
the  war  as  the  result  of  the  Japanese  attack.   Of  course,  every- 
body expects  that  the  military  and  political  conduct  of  the  war  up 
to  now  will  be  criticized  severely,  but  in  the  end  there  probably 
will  be  unanimous  support  for  concentration  of  all  available  forces 
in  order  to  avert  the  grave  threat  which  is  considered  really  ser- 
ious. 

Iran: 

See  Political  Review  No.  301,  Paragraph  k   for  contents  of  the  pact 
proposed  by  the  British  and  the  Russians.   The  pact  contains,  among 
other  clauses,  a  stipulation  for  occupation  and  control  of  the 
Iranian  traffic  routes,  a  guarantee  of  present-day  Iranian  frontiers, 
and  withdrawal  of  all  troops  six  months  after  cessation  of  hostili- 
ties. Attempts  to  effect  an  early  withdrawal  of  Russian  troops 
through  British  mediation  failed. 

U.S.A.: 

According  to  Reuter,  Churchill  arrived  in  Washington  accompanied 
by  Lord  Beaverbrook;   Admiral  Dudley  Pound;   Field  Marshal  Dill, 
the  Chief  of  the  Imperial  General  Staff;   Air  Chief  Marshal  Portal, 
the  Chief  of  Staff  of  the  RAF;   U.S.  Ambassadors  Vinant  and  Harri- 
man.  Roosevelt  declared  that  the  visit  serves  a  purpose  of  prime 
importance,  the  destruction  of  Hitlerism  throughout  the  world.   It 
is  planned  to  set  up  a  fully  coordinated  system  of  warfare  in  which 
Russia,  China,  the  Netherlands,  and  the  British  Dominions  will  also 
be  included. 

Concerning  the  attitude  of  the  Latin  American  countries,  a  confi- 
dential declaration  from  the  Chilean  Foreign  Ministry  receives 
close  attention.   It  states  that  Chile  does  not  consider  breaking 
diplomatic  relations  with  the  Axis  Powers  and  will  demand  economic 
concessions  from  the  U.S.  merely  for  declaring  her  solidarity. 
Argentina  and  Peru  would  act  likewise. 

Japan : 

According  to  the  opinion  held  by  Japanese  military  circles,  rein- 
forcements for  Singapore  will  probably  arrive  too  late.  A  report 
from  the  German  Ambassador  states  that  Japanese  circles  are  trying 
hard  to  show  toward  Germany  a  degree  of  warmth  which  is  unusual 
in  Japan.   It  is  given  to  understand  that  Japan  is  especially  anxious 
for  military  cooperation  with  Germany  and  the  reopening  of  a  shipping 
route  between  Japan  and  Europe.  A  German  offensive  in  the  Near  East 


9862 

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23  Dec.  1941  CONFIDENTIAL 

will  be  especially  welcome  after  the  successful  Japanese  advance 
into  southern  Asia. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

The  Chief,  Naval  Staff  decides  that  the  top  personalities  of  the 
Italian  Navy  are  not  to  be  decorated  with  the  Iron  Cross  as  pro- 
posed by  the  Commanding  Admiral,  German  Naval  Command,  Italy  until 
the  meeting  between  the  Chief,  Naval  Staff  and  Admiral  Riccardi, 
which  is  to  take  place  in  the  near  future. 

The  Chief,  Communications  Division,  Naval  Staff  reports  on  confer- 
ences with  the  Japanese  Naval  Attache  concerning  two  radar  locat- 
ing gear  (one  for  shipboard  and  one  for  land)  to  be  given  the  Japa- 
nese. They  can  be  sent  to  Japan  with  the  next  available  shipping 
facility  in  the  middle  of  January.  He  also  reports  on  radar  decoy 
balloons,  as  well  as  on  the  introduction  of  a  new  cipher  machine 
with  four  cipher  wheels  instead  of  three,  which  constitutes  a  note- 
worthy progress  in  code  technique. 

The  Naval  Staff,  Operations  Division,  Foreign  Affairs  Section  gives 
an  account  of  the  French  report  concerning  the  condition  of  the 
DUNKERQUE,  the  complete  repair  of  which  would  have  to  take  place 
at  Toulon  and  would  require  eight  to  nine  months.  An  account  is 
also  given  of  the  progress  made  at  the  conferences  of  the  Armistice 
Commission  concerning  the  so-called  "Rommel  tonnage".  These  con- 
ferences seem  hopeless  in  view  of  the  uncompromising  attitude  of 
the  French,  who  again  demand  revision  of  the  treaty  as  a  prerequi- 
site for  any  agreement. 

The  Chief  of  Staff,  Naval  Staff  expounds  the  following  ideas  about 
setting  up  new  blockade  zones:  The  blockade  zones  should  be  ef- 
fective against  neutrals.  The  remaining  European  neutrals  are 
somehow  or  other  within  the  German  sphere  of  influence,  and  their 
shipping  is  therefore  also  to  be  controlled  as  Germany  desires. 
Therefore  it  remains  to  be  seen  what  attitude  the  neutral  South 
American  countries  will  adopt  and  it  is  wise,  therefore,  to  make 
the  decision  on  setting  up  new  blockade  zones  dependent  on  that 
attitude. 

The  Naval  Staff,  Operations  Division,  Liaison  with  Air  Force  re- 
ports on  the  revision  of  the  areas  under  the  Commander,  Naval  Air 
and  the  3rd  and  5th  Air  Force. 


Special  Items: 

I.   See  War  Diary,  Part  C,  Vol.  lib  for  considerations  by  the 
Naval  Staff  concerning  the  transfer  of  the  TIRPITZ  to  Trondheim. 
Since  it  is  desirable  to  hold  as  many  enemy  forces  in  the  Atlan- 
tic area  as  possible  in  view  of  latest  developments,  this  trans- 


9862 

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% 


23  Dec.  1941  CONFIDENTIAL 

fer  has  assumed  particular  importance.  A  corresponding  directive 
is  sent  by  the  Fleet  Operations  Section,  Naval  Staff  to  Group 
North;   Fleet;   Commanding  Admiral,  Battleships;   and  the  Command- 
er of  the  TIHPITZ.   Copies  to  Group  West  and  Commanding  Admiral, 
Norway  (l/Skl  I  op  2175/41  Gkdos.  Chefs.). 

II.  After  a  conference  with  the  Fuehrer,  the  Chief,  Armed  Forces 
High  Command,  Operations  Staff,  National  Defense  orders  that  the 
entire  output  of  carbines  be  put  at  the  disposal  of  the  Army  and 
that  all  home  based  units  of  the  Air  Force  and  Navy  immediately 
are  to  deliver  at  least  50^  of  their  Model  98  firearms  to  the  near- 
est Army  Ordnance  Depot  without  substituting  captured  weapons.   The 
respective  High  Commands  are  to  report  on  the  execution  of  this  or- 
der. For  a  copy  of  this  directive  which  contains  further  orders 
not  concerning  the  Navy  see  Radiogram  2315. 


Situation  23  Dec.  1941 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

North  Atlantic : 

According  to  radio  monitoring,  the  RENOWN  is  located  in 
the  Seydis  Fjord,  the  BERWICK  In  the  Iceland  area,  and  the  RODNEY 
and  ARETHUSA  at  sea  in  the  northern  Scotland  area.  On  17  Dec.  the 
battleship  HOWE  was  located  at  sea,  presumably  in  the  Greenock 
area.   On  22  Dec.  Land's  End  rebroadcast  a  distress  signal  from 
the  British  steamer  CLAN  MACAULAY,  approximately  130  miles  north- 
east of  Bermuda,  indicating  the  presence  of  an  enemy  warship. 
The  alarm  was  cancelled  an  hour  later.  Naval  offices  were  warned 
that  the  approaches  to  Boston  harbor  have  been  mined  and  received 
sailing  directions. 

South  Atlantic : 

On  22  Dec.  the  British  steamer  SCYTHIA  (19,761  BRT)  ar- 
rived at  Freetown  and  the  BIRMINGHAM  at  Montevideo.  A  large  fire 
broke  out  on  the  French  steamer  AURIGNY  in  the  harbor  of  Buenos 
Aires. 

Pacific  Ocean; 

A  submarine  warning  was  issued  for  the  U.S.  West  Coast 
in  34°  30'  N  120°  30'  W. 

2.  Own  Situation; 

Ship  "10"  was  informed  about  the  brief  report  from  ship 
"41"  (compare  War  Diary  22  Dec.)  by  Radiogram  0601.   Information 
to  all  concerned  as  to  code  word  orders  in  effect,  by  Radiogram 
1012.  Report  on  the  enemy  situation  by  Radiogram  2103.   See  Situa- 
tion West  Area  for  the  turning  back  of  ship  "10"  and  tanker  BENN0. 


9862 

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23  Dec.  19^1  CONFIDENTIAL 

II.  Situation  West  Area 

1.  Enemy  Situation; 

Radio  monitoring  intercepted  a  report  from  enemy  planes 
concerning  a  bomb  attack  at  1000  on  a  tanker  200  miles  vest  of 
Cape  Ortegal.  Until  1804  the  enemy  planes  maintained  contact  with 
this  tanker,  apparently  the  BENNO,  which  was  reported  to  be  leaking 
oil  badly.  At  1830  a  destroyer  was  approximately  250  miles  from 
the  location  of  the  tanker  in  45°  N,  13°  25 »  W  at  full  speed, 
course  100°.  Convoy  HG  77  was  located  at  BE  8110. 

2.  Own  Situation: 

Atlantic  Coast; 

No  German  reports  were  received  concerning  the  BENNO,  ob- 
viously as  the  result  of  interference.   In  view  of  this  situation, 
Group  Vest  decided  at  noon  to  cancel  the  missions  of  ship  "10"  and 
BENNO  and  to  order  them  to  turn  back.  To  this  end,  the  BENNO  re- 
ceived an  order  by  Radiogram  1223  to  make  for  Spanish  territorial 
waters  as  quickly  as  possible  and  to  proceed  back  to  the  Gironde. 
At  1*116,  the  BENNO  was  informed  by  Group  West  that  submarines  and 
planes  will  be  sent  out  to  escort  her,  and  at  1923  was  informed  of 
the  location,  course,  and  speed  of  the  British  destroyer.  From  a 
report  from  the  Air  Commander,  Atlantic  Coast  it  later  became  evi- 
dent that  the  BENNO  in  damaged  condition  was  located  in  BE  9239  at 
1120,  course  110°,  speed  8  to  10  knots.  Therefore,  she  obviously 
turned  back  immediately  after  the  enemy  air  raid  at  1000.  At  1935 
the  tanker  was  located  about  60  miles  northeast  of  Cape  Ortegal 
under  our  own  air  cover.  Ship  "10"  is  scheduled  to  meet  escorts 
on  24  Dec.  at  0600  near  Bayonne. 

Mines  are  suspected  along  the  submarine  route  80  miles  southwest 
of  Lorient.  Two  Spitfires  were  over  Brest  from  1721  to  1753. 
Forty  enemy  planes  raided  Brest  beginning  at  1910.  175  high  ex- 
plosive and  200  incendiary  bombs  were  dropped  and  scored  hits 
among  other  places  on  the  naval  harbor,  the  airbase  at  South  Brest, 
and  anti-aircraft  positions.  Aside  from  some  damage  within  the 
city,  a  direct  hit  was  scored  on  the  billet  of  a  Navy  chemical  war- 
fare unit,  causing  six  dead  and  fourteen  wounded.  Further,  damage 
was  caused  in  the  Army  motor  pool.  No  vessels  were  damaged. 

Channel  Coast; 

Coastal  patrol  vessel  "1810"  capsized  during  undocking 
operations  at  Le  Havre  on  22  Dec.  The  cause  of  this  accident  is 
unknown . 


III.  North  Sea,  Norway,  Arctic  Ocean 
1.   North  Sea: 

Nothing  to  report. 


9862 
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23  Dec.  19*U  CONFIDENTIAL 

2.   Norway: 

Enemy  Situation; 

Lively  radio  telephone  traffic  between  Russian  and  British 
vessels  (submarines)  as  well  as  between  these  vessels  and  planes. 

Own  Situation; 

One  of  our  air  reconnaissance  patrols  sank  a  Russian  mer- 
chantman during  a  low  level  attack  east  of  Rybachi  Peninsula  and 
badly  damaged  another  one  northeast  of  Kharlovka.  The  patrol  also 
reported  ten  German  freighters  between  St.  Ekkeroe  and  Vardoe  which 
from  afar  gave  away  their  position  by  light  signals.   Otherwise 
nothing  to  report. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation; 

On  19  Dec.  radio  monitoring  intercepted  a  radio  message 
from  Someri  Island  to  Kronstadt  stating  that  an  attack  by  fifty 
Finnish  ski  troops  had  been  repulsed  without  Russian  losses. 

2.  Own  Situation; 

Group  North  requests  permission  for  mining  the  channel 
from  Kronstadt  to  Leningrad  with  aerial  mines,  Type  B  "green", 
which  are  to  be  transported  to  the  navigational  channel  from  the 
land  by  sleds.  According  to  information  received  from  the  Mine- 
laying  Experimental  Command,  aerial  acoustic  mines  Type  B  "green" 
•can  later  be  swept  individually  if  their  location  is  definitely 
known. 

Group  North  advises  the  Commander,  Mine  Units  by  Radiogram  1250 
that  the  convoy  traffic  to  Reval  via  Helsinki  has  priority  over 
all  other  operations. 


V.   Merchant  Shipping; 

The  German  steamer  EGERAN  which  sank  on  26  Nov.  was  the  fourth  ves- 
sel lost  in  the  Memel  harbor  mine  field.  In  view  of  the  apparently 
ineffective  safety  measures  taken  by  the  Baltic  Naval  Station,  the 
High  Command,  Navy  intervenes  through  the  Chief,  Maritime  Branch  of 
the  Operations  Division,  Naval  Staff.  For  text  of  the  directive 
see  War  Diary,  Part  C,  Vol.  VI  (l/Skl  Ha  5^-25/^1  geh.). 


9862 

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23  Dec.  19*U  CONFIDENTIAL 

VI.   Submarine  Warfare 

1 .  Enemy  Situation; 

Radio  monitoring  intercepted  a  report  from  a  British  de- 
stroyer stating  that  the  escort  carrier  AUDACITY  (formerly  refer- 
red to  as  UNICORN)  sank  in  the  Western  Approaches  at  2300  on 
21  Dec.   This  eliminates  all  doubt  of  the  success  achieved  by 
submarine  U  "751". 

2.  Own  Situation; 

The  submarines  which  were  operating  against  convoy  HG  77 
received  orders  to  withdraw  and  were  assigned  new  missions.   On 
21  Dec.  a  submarine  east  of  Gibraltar  scored  two  hits  on  a  steamer 
of  8,000  3RT,  presumably  a  transport,  travelling  in  a  convoy.  Fur- 
ther observation  was  impossible  because  of  strong  enemy  countermea- 
sures.   In  the  eastern  Mediterranean  a  submarine  off  Tobruk  sank  a 
steamer  from  a  convoy  travelling  in  an  easterly  direction  and  dam- 
aged another  one.  For  detailed  situation  report  see  War  Diary, 
Tart  B,  Vol.  IV. 

The  Commanding  Admiral,  Submarines  made  it  clear  to  the  Commander, 
Air,  Atlantic  Coast  that  the  success  achieved  during  the  attacks 
on  the  well  protected  convoy  HG  77  (one  aircraft  carrier  and  five 
vessels  sunk)  was  made  possible  only  through  the  cooperation  of  the 
40th  Bomber  Squadron,  the  reconnaissance  of  which  located  the  con- 
voy on  15  Dec.  He  said  that  the  reconnaissance  done  by  the  40th 
Bomber  Squadron  during  the  following  days  was  very  accurate  as  to 
position  of  the  convoy  in  spite  of  the  latters'  strong  fighter 
plane  escort  (see  Radiogram  1600). 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

Forty  two  of  our  planes  laid  aerial  mines  in  the  Thames 
area  during  the  night,  and  eight  planes  flew  missions  against 
shipping.  During  the  night  of  23  Dec.  fifty  eight  enemy  planes 
raided  the  Reich;   six  of  these  raided  the  area  Borkum-Sylt-Kiel 
Bay.  For  data  on  air  raids  over  Brest  see  Situation  West  Area. 
No  important  damage  was  caused  by  enemy  air  activity  over  the  Dun- 
kirk-Calais area.  * 

2.  Mediterranean  Theater; 

For  observations  by  air  reconnaissance  see  Situation  Medi- 
terranean. 

3.  Eastern  Front; 
Nothing  to  report. 


•237- 


23  Dec.  19^1  CONFIDENTIAL 

VIII.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation; 

No  reports  on  enemy  movements  were  received  from  the  west- 
ern, central,  or  eastern  Mediterranean.  According  to  a  report  from 
an  Italian  agent,  British  losses  in  the  Mediterranean  during  the 
past  week  are  as  follows: 

Sunk:   Two  cruisers,  one  destroyer,  and  one  submarine. 

Damaged:   Two  cruisers.   One  of  these,  damaged  by  aerial 
torpedoes,  arrived  at  Alexandria  from  Malta.   The  other  damaged 
cruiser  is  also  at  Alexandria. 

2.  Situation  Italy: 
Nothing  to  report. 

3.  Transport  of  Supplies  to  North  Africa: 

Four  transport  submarines  are  en  route  to  Bardia.  Two 
destroyers  are  scheduled  to  arrive  at  Tripoli  the  morning  of 
2h   Dec.   Three  more  destroyers  with  German  and  Italian  troops 
will  leave  Augusta  for  North  Africa  the  evening  of  23  Dec.   Pour 
naval  barges  are  to  leave  Palermo  for  Tripoli.   According  to  a  re- 
port from  the  Commanding  Officer,  Supply  and  Transports,  North 
Africa,  enemy  interference  must  be  expected  along  the  route  from 
Benghazi  to  Agedabia.  Tank  lighter  GIORGIO  is  lying  in  readiness 
for  blocking  the  entrance  to  Benghazi  harbor.  The  moles  are  to  be 
blasted  on  23  Dec.  after  the  last  casualties  have  been  loaded  a- 
board  the  hospital  ship  TOSCANA  (see  Radiogram  1400). 

4.  Area  Naval  Group  South: 
Nothing  to  report. 

5.  Situation  France: 

Concerning  the  defense  of  Corsica,,  the  French  Delegation 
has  asked  the  Italian  Armistice  Commission  for  permission  to  take 
appropriate  measures.   The  Italian  Navy  considers  a  3ritish-De 
Gaullist  attack  on  the  island  unlikely  at  this  time  and  is  of  the 
opinion  that  the  French  request  should  not  be  granted.   The  Italian 
Navy  is  particularly  opposed  to  measures  by  the  French  involving 
the  use  of  surface  vessels,  submarines,  and  aircraft  carriers, 
since  this  might  lead  to  confusion  with  Axis  vessels.   The  Italian 
Navy  requests  an  opinion  from  the  Naval  Staff.  For  details  see 
the  teletype  from  the  German  Naval  Command,  Italy  as  Der  l/3kl 
29727/41"  Gkdos.  In  War  Diary,  Part  C,  Vol.  XVI. 


IX.   Situation  East  Asia 
1.   Enemy  Situation: 

For  a  description  of  the  Burma  Road  including  a  map,   ee 


9862 


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23  Dec.  19^1  CONFIDENTIAL 

News  Analysis  No.  47  of  the  report  series  "Foreign  Navies"  publish- 
ed by  the  Naval  Intelligence  Division.  U.S.  Headquarters  at  Manila, 
reports  a  Japanese  landing  with  eighty  transports  under  strong  na- 
val escort  in  Lingayen  Gulf  (Luzon).   Landing  attempts  were  repulsed 
at  several  places.  According  to  press  reports,  numerous  reinforce- 
ments of  troops  and  planes  arrived  at  Rangoon.   An  Italian  press  re- 
port states  that  the  U.S.  and  Soviet  Russia  are  making  joint  war- 
preparations  in  Siberia,  the  Aleutians,  and  Kamchatka.   Air  bases 
are  said  to  be  under  construction  on  Kamchatka.   On  22  Dec.  the  Ad- 
miral, Colombo  (Ceylon)  issued  a  warning  that  a  submarine  is  south- 
east off  Trincomalee. 

2.   Situation  Japan: 

According  to  a  report  from  the  military  attache  at  Bang- 
kok, the  Japanese  forces  on  Luzon  reached  Tagudin  from  the  north 
and  Nags,  from  the  east.  Doraei  reports  that  Davao  was  occupied. 
According  to  radio  Bangkok,  Japanese  planes  raided  Kuala  Lumpur, 
seat  of  the  Government  of  the  Federated  Malay  States.   The  Japanese 
report  a  further  landing  on  Luzon  without  giving  details  (see  en- 
emy situation).   See  News  Analysis  No.  47  of  the  report  series 
"Foreign  Navies"  published  by  the  Naval  Intelligence  Division  for 
a  list  of  Japanese  defense  zones,  accompanied  by  a  map,  as  per  in- 
formation from  the  Japanese  Navy  Department. 


X.   Army  Situation 

1.  Russian  Front; 

Southern  Army  Group: 

A  regrouping  of  our  troops  took  place  in  the  Crimea  in 
order  to  prepare  an  attack  on  Sevastopol  from  the  north.   There 
was  heavy  enemy  artillery  fire,  also  from  the  sea,  against  our 
positions  near  Balaklava  and  on  Kerch.  The  situation  remains  un- 
changed on  the  sectors  of  the  1st  Panzer  Army,  the  17th  and  the 
6th  Armies. 

Central  Army  Group: 

The  2nd  Army  was  able  to  maintain  its  position.  Enemy 
penetrations  near  Kaluga  and  Aleksin  on  the  4th  Army  sector  were 
blocked. 

Northern  Army  Group: 

An  enemy  penetration  occurred  in  the  50th  Army  Corps  sec- 
tor.  Otherwise  no  change  in  the  situation. 

2.  Finnish  and  Norwegian  Front: 

Enemy  attacks  on  the  Svir  sector  and  on  positions  of 
Mountain  Corps,  Norway  were  repulsed. 


-239- 


25  Dec.  1941  CONFIDENTIAL 

3.   North  Africa: 

The  route  from  Benghazi  to  Agedabia  vas  kept  open  by 
counterattacks  of  the  German  Afrika  Korps.   The  harbor  of  Benghazi 
was  demolished.  See  War  Diary  Files  "Barbarossa"  for  an  official 
statement  on  the  situation  on  the  Eastern  Front.   The  Armed  Forces 
High  Command,  Operations  Staff,  National  Defense  supplied  this 
statement  at  the  request  of  the  Foreign  Office. 


*#**#*#****•*****•******♦**■ 


9862 
-240- 


CONFIDENTIAL 


2k   Dec.  1941 

Items  of  Political  Importance 

Great  Britain  and  U.S.A. : 

Foreign  press  reports  state  „hat  far-reaching  agreements  concerning 
the  Allied  Military  High  Command  have  already  been  reached  at  the 
conferences  in  Washington.  According  to  these  reports  the  High  Com- 
mand in  the  Pacific  is  to  he  American.  General  Douglas  MacArthur, 
the  present  Commander  in  Chief  in  the  Philippines,  will  command 
ground  troops  and  Admiral  King  will  command  the  Navy.  The  British 
are  to  have  over-all  command  over  naval  and  air  forces  in  the  At- 
lantic.  In  the  European  theater  of  war  the  Russians  would  play 
the  most  Important  part,  while  the  Middle  East  and  North  Africa 
come  under  the  authority  of  British  and  Empire  forces. 

Churchill  declared  during  a  press  conference  that  Singapore  would 
be  defended  until  the  Allies  launch  an  offensive  in  East  Asia.  For 
further  details  see  Political  Review  No.  502,  Paragraph  3b. 

With  the  consent  of  the  Canadian  War  Cabinet,  Roosevelt  announced 
the  text  of  the  resolution  of  the  U.S. -Canadian  joint  War  Produc- 
tion Committee.  This  committee  will  work  for  maximum  war  produc- 
tion, through  cooperation  between  the  two  countries.  For  the  text 
of  the  resolution  see  Political  Review  No.  302,  Paragraph  3e. 

The  U.S.  Government  intends  to  send  an  envoy  to  the  Vatican.  The 
latest  war  news  from  East  Asia  has  caused  an  unprecedented  sale  of 
securities  on  the  New  York  stock  market. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff, 
No  special  reports  or  decisions. 


Special  Items: 

Concerning  the  Japanese  proposal  for  creation  of  a  border  line  in 
70°  (see  War  Diary  17  and  19  Dec),  the  Armed  Forces  High  Command 
shares  the  objections  raised  by  the  Naval  Staff  and  agrees  with 
its  counterproposal.  However,  from  a  military  viewpoint  the  mat- 
ter is  not  considered  so  Important  as  to  justify  the  risk  of  com- 
plications and  delays  in  the  conferences  should  the  Japanese  ob- 
ject to  any  changes  in  their  proposal. 

According  to  a  report  by  the  Commander  in  Chief,  Air  to  the  Armed 
Forces  High  Command,  it  will  be  impossible  to  establish  military 
air  communications  between  either  Germany  yv   Italy  air.d  Japan  dur- 
ing the  next  few  years.  Neither  the  plar. ,  •  now  available  nor  those 


-241- 


9862 


24  Dec.  1941  CONFIDENTIAL 

in  the  blueprint  stage  have  a  sufficiently  long  range.  For  .the 
teletype  from  the  Armed  Forces  Eigh  Command,  see  War  Diary,  Part  C, 
Vol.  XV  (1/Skl  29755/41  Gkdos.). 


Situation  24  Dec.  1941 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

South  Atlantic ; 

The  BIRMINGHAM  departed  from  Montevideo  on  23  Dec . .   On 
12  Dec.  the  auxiliary  cruiser  WOLFE  inquired  from  the  Allied  Chief, 
South  Atlantic  whether  the  German  steamer  WARTENFELS  and  the  subma- 
rines attached  to  it  could  have  changed  course.  On  20  Dec.  the 
WOLFE  was  at  sea  south  of  St.  Helena  and  the  BULOLO  between  20°  and 
30°  S,  30°  W  and  the  coast  of  South  America.   On  24  Dec.  the  Ad- 
miral, Colombo  requested  an  unknown  British  steamer  to  rescind  her 
report  concerning  the  vicinity  of  an  enemy  naval  vessel.  Original 
circumstances  are  unknown. 

2.  Own  Situation t 

The  commander,  five  officers,  and  eighty  four  men  of 
ship  "16"  arrived  in  St.  Nazaire  at  noon  aboard  submarines  U  "68" 
and  U  "A".  Thus  the  first  group  has  successfully  completed  the 
eventful  homeward  journey. 

The  reasons  and  events  leading  to  the  loss  of  ship  "16"  and  the 
PYTHON  have  not  yet  been  fully  explained.   It  may  be  assumed  cer- 
tain that  the  enemy  received  information  through  agents  that  sub- 
marine supply  ships  departed  from  western  France.  The  appearance 
of  submarines  west  of  Freetown,  off  the  Ivory  Coast,  and  between 
St.  Helena  and  Angola  indicated  to  the  enemy  that  German  supply 
ships  must  be  operating  in  the  Central  and  South  Atlantic.  There- 
fore the  enemy  established  patrols.   On  the  basis  of  information 
gathered  by  the  radio  communication  intercept  service,  these  pa- 
trols were  found  to  be  concentrating  along  the  line  Pernambuco, 
Freetown,  and  northwest  of  St.  Paul. 

The  Naval  Staff  so  far  believes  it  unlikely  that  the  meeting  of 
our  ships  with  enemy  forces  was  merely  coincidental,  since  the 
pattern  of  events  was  the  same  as  when  the  ESSO  and  the  EGERLAND 
were  lost.  Then  too  our  ships  encountered  heavy  enemy  cruisers 
shortly  after  the  prearranged  time  and  at  the  precise  point  of 
rendezvous.   It  cannot  be  assumed  that  the  enemy  was  able  to  break 
our  codes,  since  the  execution  of  numerous  other  operations  gives 
no  reasons  for  such  a  supposition.  In  the  opinion  of  the  Naval 
Staff,  Submarine  Division  our  codes  are  safe.  Conspicuous  are  re- 
curring losses  of  ships  while  cooperating  with  submarines.  This 
might  be  explained  by  special  concentration  of  enemy  intelligence 
on  submarine  warfare.  The  preceding  analysis  is  made  available 


9862 

-242- 


24  Dec.  1941  CONFIDENTIAL 

to  ship  "10"  with  the  remark  that  the  basic  view  on  the  situation 
and  the  possibilities  for  operations  in  the  Atlantic  remains  un- 
changed in  spite  of  the  losses  sustained.   The  return  of  ship  "45" 
which  proc  .-3ded  according  to  plan;   the  arrival  of  the  prizes 
SILVAPLANA  and  KOTA  NOFAN  as  well  as  of  the  BURGENLAND;   and  the 
successful  departure  of  the  RIO  GRANDE  and  PORTLAND  justify  this 
opinion.   The . change  made  in  Paragraph  G4  of  the  operations  plan 
is  explained  "by  the  fact  that  no  more  ships  are  at  sea,  and  that 
the  only  available  merchant  raider,  ship  10",  should  make  its  ap- 
pearance in  the  designated  area  as  quickly  as  possible  (see  commun- 
ication 1315). 

In  accord  with  the  proposal  made  by  "Etappe  Japan"  (German  Naval 
Intelligence  Organization  in  Japan,- Tr. N.J,  motor  ship  PORTLAND  is 
directed  by  Radiogram  0107  to  destroy  all  SEATTLE  papers  and  to 
make  herself  known  to  the  Japanese  only  as  the  PORTLAND.  Radiogram 
l6l4  subsequently  directs  the  PORTLAND  to  relinquish  neither  papers 
nor  cargo  to  the  Japanese  when  in  port,  unless  ordered  to  do  so  by 
the  German  Naval  Attache.   Report  on  the  Enemy  Situation  by  Radiogram 
1212. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

According  to  radio  monitoring,  at  1025  a  British  plane 
unsuccessfully  attacked  a  tanker  12  miles  north  of  Cape  Ortegal. 
At  1320,  four  planes  received  orders  to  attack  a  tanker  lying  at 
anchor  off  Cape  Ortegal.  At  1540  a  British  plane  reported  having 
scored  a  probable  torpedo  hit  on  the  tanker.  Further  air  raids  on 
the  tanker  followed  at  1651. 

2.  Own  Situation: 

Atlantic  Coast: 

During  enemy  air  activity  over  Brest  between  1022  and  1050 
a  plane  contacted  a  balloon  wire  but  did  not  crash.  According  to  a 
report  from  the  Brest  shipyard,  it  is  estimated  that  it  will  take 
four  weeks  for  dock  repairs  before  the  SCHARNHORST  can  be  undocked 
(see  Radiogram  1434). 

Thereby  enemy  action  has  once  again  caused  a  very  re- 
grettable delay  in  operations  to  make  this  vessel  fit 
for  action. 

According  to  a  report  at  2215  from  the  Naval  Attache  at  Madrid,  the 
tanker  BENN0  was  unsuccessfully  attacked  by  British  planes  off  Fer- 
rol  at  0930  Spanish  time,  while  proceeding  elapse  to  shore.   The 
BENN0  entered  the  Ria  del  Ferrol  and  anchored  in  Corunna  Bay  where 
she  was  again  attacked  by  British  planes  in  the  afternoon  and  sunk. 
The  attacks  continued  even  after  the  ship  had  sunk,  apparently  be- 
cause the  condition  of  the  ship  could  not  be  clearly  determined  from 
the  air  on  account  of  the  shallow  water  (see  Radiogram  2215).   The 


,  9862 

-243- 


2k   Dec.  19^1  CONFIDENTIAL 

vessel  had  anchored  approximately  500  meters  off  the  coast,  i.e., 
irrefutably  within  Spanish  territorial  waters . 

The  ruthless  British  methods  thus  finally  succeeded, 
as  in  the  case  of  the  ALTMARK,  in  sinking  this  ship 
which  was  so  valuable  to  us.  Further  details  are 
not  yet  available. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation: 

According  to  radio  monitoring,  the  following  British  ves- 
sels were  located  in  the  area  of  northern  Scotland  and  Iceland  on 
22  Dec:   KING  GEORGE  V,   DUKE  OF  YORK,  RESOLUTION,  RODNEY,  RENOWN, 
VICTORIOUS,  ILLUSTRIOUS,  KENT,  BERWICK,  NORFOLK,  NIGERIA,  UGANDA, 
SHEFFIELD,  TRINIDAD,  SUFFOLK,  KENYA,  CARDIFF,  CAIRO,  CURACAO,  CUM- 
BERLAND, HAWKINS,  as  well  as  the  NELSON,  which  is  undergoing  re- 
pairs. 

Own  Situation: 

Slight  damage  and  small  loss  of  personnel  was  sustained 
during  an  enemy  air  raid  on  one  of  our  convoys  proceeding  in  a 
westerly  direction.   The  attacking  planes  bore  German  markings. 

2.  Norway: 

Enemy  Situation: 

Nothing  to  report. 

Own  Situation: 

The  signal  station  at  Honningsvaag  is  in  operation  again. 
One  British  torpedo  was  salvaged.   On  23  Dec.  an  explosive  cutter 
exploded  aboard  minesweeper  "1508"  while  the  gear  was  being  brought 
in.   One  man  was  killed  and  six  were  seriously  injured.  Enemy 
olanes  unsuccessfully  attacked  a  convoy  near  Feistein.  Battery 
1lVigdal"  shot  down  an  enemy  plane. 

See  War  Diary,  Part  C,  Vol.  Ila  for  the  negative  opinion  from  the 
Naval  Staff,  Quartermaster  Division,  Plans  and  Schedules  Branch 
concerning  the  statement  made  by  the  Commanding  General,  Armed 
Forces,  Norway  on  7  Nov..  At  that  time  the  latter  asserted  that 
the  coastal  defense  against  enemy  landings  in  Norway  is  not  fool- 
proof in  view  of  a  shortage  of  artillery  weapons  and  inadequate 
command  organization.   He  proposed  transferring  the  coastal  defense 
of  Norway  to  the  Armed  Forces,  thus  making  the  Commander,  Armed 
Forces,  Norway  directly  responsible  for  it.  Entry  in  the  War  Diary 
as  per  Ski  Qu.  All  2481/41  Gkdos. 


-244-  9862 


24  Dec.  1941  CONFIDENTIAL 

IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea; 
No tning  to  report. 


V.   Submarine  Warfare 

1.  Enemy  Situation: 

Lively  air  activity  throughout  the  entire  rendezvous 
area  and  the  Bay  of  Biscay. 

Radio  monitoring  intercepted  a  message  from  an  unknown  British  ves- 
sel concerning  an  air  raid  at  1120  and  shortly  thereafter  an  urgent 
operational  radiogram  from  the  same  vessel.  The  location  of  the 
vessel  was  not  determined.  According  to  radio  monitoring,  convoy 
UR  1,  which  has  not  appeared  on  the  scene  so  far,  presumably  left 
the  Clyde  bound  for  Reykjavik.  The  Dutch  steamer  BINTANG  sent  an 
SOS  from  about  100  miles  south  of  Newfoundland. 

2.  Own  Situation: 

A  submarine  in  the  eastern  Mediterranean  scored  a  prob- 
able hit  on  a  steamer.  Another  submarine  sank  a  one-stack  destroy- 
er. For  a  detailed  situation  report  see  War  Diary,  Part  B,  Vol.  IV. 

For  a  detailed  opinion  from  the  Naval  Staff  to  the  Commanding  Ad- 
miral, Submarines  concerning  submarine  operations  in  the  Atlantic 
see  War  Diary,  Part  C,  Vol.  IV.  Entry  in  the  diary  as  per  l/Skl 
I  op  2190/41  Gkdos.  Chefs. 


VI.  Aerial  Warfare: 

No  reports  have  been  received. 


VII.  Warfare  in  the  Mediterranean 

1.   Enemy  Situation: 

Western  Mediterranean: 

According  to  a  report  from  an  Italian  agent,  the  Polish 
transport  BATTORY  arrived  at  Gibraltar  on  23  Dec.  with  3,500  troops 
aboard.  The  troops  remained  aboard.  The  transport  is  expected  to 
proceed  in  a  -westerly  direction. 

Central  and  Eastern  Mediterranean : 

In  the  afternoon  of  23  Dec.  the  Italian  submarine  TURCHESE 
sighted  two  cruisers  and  ^our  destroyers  on  southwesterly  course 


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9862 


2k   Dec  19^1 


CONFIDENTIAL 


north  of  Cape  Bugarun,  Algeria.  During  the  evening  a  cruiser  of 
the  Mediterranean  Fleet  was  located  60  miles  off  Tobruk.  Air  re- 
connaissance over  Malta  on  2k   Dec.  revealed  no  change  in  the  num- 
"ber  of  ships  lying  in  the  harbor.  At  the  same  time,  air  reconnais- 
sance located  five  vessels,  probably  one  or  two  cruisers  and  de- 
stroyers, 15  miles  south  of  Malta  on  a  northerly  course.   These 
were  presumably  the  same  vessels  which  the  TURCHESE  had  reported  on 
23  Dec.  German  air  reconnaissance  reported  a  coastal  patrol  ves- 
sel 15  miles  off  Derna,  and  20  miles  south  of  Cape  Martello,  Crete, 
an  unknown  vessel  on  course  210°.   In  the  area  off  Alexandria, 
radio  monitoring  located  a  presumably  damaged  British  vessel  during 
the  evening  of  25  Dec.  This  vessel  was  joined  by  another  vessel. 
During  the  morning  of  2k   Dec.  radio  monitoring  intercepted  a  mes- 
sage from  a  vessel  approximately  kO   miles  northwest  of  Alexandria. 
The  vessel  had  a  leak  in  the  engine  room  and  was  urgently  request- 
ing the  assistance  of  a  tugboat. 


2. 


Own  Situation: 


At  0800  the  3rd  PT  Flotilla  returned  to  its  base  harbor 
from  a  mission.  No  report  of  success. 

3.   Situation  Italy: 

At  1900  on  23  Dec.  the  torpedo  boat  CALLIOPE  was  the  last 
Italian  vessel  to  leave  Benghazi  bound  for  Tripoli.  Aboard  her 
were  the  Commanding  General  and  the  Naval  Commander  of  the  fortress, 

In  principle  the  Naval  Staff  agrees  with  the  Commanding  Admiral, 
German  Naval  Command,  Italy  concerning  the  question  of  decorating 
top  personalities  of  the  Italian  Navy  with  the  Iron  Cross  in  recog- 
nition of  the  successful  transfer  of  Transport  Squadron  52  to 
Tripoli  and  Benghazi.  However,  the  Naval  Staff  does  not  consider 
such  action  opportune  at  the  present  time  in  view  of  the  situation 
in  Africa,  and  plans  to  award  the  decorations  on  the  occasion  of 
the  meeting  between  the  Commander  in  Chief,  Navy  and  Admiral  Ric- 
cardi  in  January.  The  German  Naval  Command,  Italy  has  been  asked 
for  an  expression  of  opinion  and  for  detailed  information  concern- 
ing corresponding  awards  of  decorations  in  the  Army  and  the  Air 
Force  (see  Radiogram  1500). 

k.       Transport  of  Supplies  to  North  Africa: 

Operations  of  merchant  raiders  and  submarines  were  car- 
ried out  according  to  plan.   Hospital  ship  TOSCANA  arrived  at 
Benghazi  at  noon  23  Dec.  According  to  a  report  from  the  Command- 
ing Officer,  Supply  and  Transports,  North  Africa  the  daily  unload- 
ing capacity  of  the  ports  in  the  Gulf  of  Sidra  is  approximately  as 
follows,  depending  somewhat  on  weather  conditions: 


In  Ras  el  Aali 

In  Mars i  el  Auegia 

In  Sirte 

In  Buerat  el  Hsur. 

For  details  see  Radiogram  1936. 


up  to  350  tons 
up  to  120  tons 
up  to  300  tons 
up  to  400  tons 


-246- 


9862 


24  Dec.  1941  CONFIDENTIAL 

5 .  Area  Naval  Group  South : 

Aegean  Sea; 

Concerning  the  Installation  of  an  Italian  Naval  Command 
at  Suda,  the  Naval  Staff  answers  the  request  from  the  Liaison  Staff 
of  the  Italian  Navy  at  the  German  Naval  Staff  (see  War  Diary  20  Dec.) 
by  referring  to  the  development  of  the  situation  in  the  Mediterra- 
nean, which  must  have  made  the  Italian  request  meaningless.   See 
War  Diary,  Part  C,  Vol.  XIII  for  the  corresponding  message  l/Skl  I 
op  297^1  Al   Gkdos. 

Black  Sea; 

Enemy  Situation; 

Increased  activity  of  Russian  vessels  near  Sevastopol  and 
lively  artillery  activity  in  Kerch  Strait. 

Own  Situation; 

According  to  a  report  from  the  Port  Command,  Odessa  the 
harbor  will  be  ready  to  berth  one  to  three  steamers  by  New  Year. 

6.  Situation  France; 

On  the  basis  of  a  guarantee  given  by  the  U.S.,  at  the 
same  time  in  the  name  of  the  British  Government  as  well,  the  Arm- 
istice Commission  has  granted  permission  for  the  re-establishment 
of  shipping  between  the  Antilles,  French  Guiana,  and  the  U.S.A.  as 
well  as  between  North  Africa  and  the  U.S.A.  (see  Radiogram  l4j5l). 
According  to  a  very  confidential  report  from  the  French  Delegation 
to  the  Armistice  Commission  the  dispatch  vessel  D'YBERVILLE  and  the 
submarine  GLORIEUX  left  Diego  Suarez  on  18  Dec.  bound  for  Jibuti  in 
order  to  supply  the  colony  in  secret  (see  Radiogram  1200). 


VIII.  Situation  East  Asia 

1.   Enemy  Situation; 

A  Japanese  submarine  sank  the  U.S.  steamer  SAMOA  and  the 
tanker  M0NTEBELL0  off  the  California  Coast.  According  to  a  report 
from  the  U.S.  War  Department, heavy  fighting  continues  in  the  vi- 
cinity of  Lingayen  Gulf.   Japanese  destroyers  were  repulsed  by 
coastal  artillery  near  Damortis.  According  to  a  report  from  the 
.U.S.  Navy  Department,,  the  Japanese  occupied  Wake  Island  on  the  morn- 
ing of  23  Dec.  The  only  vessel  captured  in  the  process  was  the 
steamer  PRESIDENT  HARRISON.  At  noon  23   Dec.  communication  between 
Hong  Kong  and  the  British  Embassy  at  Chungking  was  still  intact 
and  reported  that  British  PT  boats  sank  two  Japanese  vessels  on 
22  Dec.  Dutch  East  Indies  planes  reported  a  successful  raid  on 
enemy  vessels  off  Davao  during  the  morning  of  23  Dec.  Radio  sta- 
tion Schenectady  reported  the  sinking  of  a  Russian  vessel  by  Japa- 
nese vessels  in  the  Sea  of  Japan  on  22  Dec. 


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9862 


24  Dec.  19^1  CONFIDENTIAL 

2.   Situation  Japan; 
No  new  reports. 


IX.  Army  Situation 

1.  Russian  Front: 

Southern  Army  Group; 

The  northern  part  of  the  fortress  area  Sevastopol  vas 
captured  in  heavy  fighting.  The  situation  remains  unchanged  on 
the  sectors  of  the  1st  Panzer  Army  and  the  17th  and  6th  Army. 
Local  attacks  were  repulsed. 

Central  Army  Group; 

All  enemy  attacks  on  the  2nd  Army  could  he  repulsed.  At 
the  2nd  Panzer  Army  sector  the  XLVII  and  LIII  Army  Corps  withdrew  to 
a  line  running  approximately  from  Chern  to  Byelev.  Additional  en- 
emy columns  are  reported  on  the  march  from  Tula.  On  the  4th  Army 
sector  the  Russians  occupied  Peremyshl  (south  of  Kaluga).  Russian 
attempts  to  cross  the  Oka  were  unsuccessful.   On  other  parts  of  the 
4th  Army  sector  and  on  the  9th  Army  sector  we  maintained  our  posi- 
tions. 

Northern  Army  Group; 

Very  heavy  enemy  attacks  were  repulsed  on  the  Volkhov 
and  Leningrad  fronts. 

2.  Finnish  and  Norwegian  Front; 

Local  fighting  on  some  front  sectors  without  special 
significance. 

J>.       North  Africa; 

Guarded  by  the  German  Afrika  Korps,  the  withdrawal  of  the 
Italian  Divisions  from  the  Benghazi  area  to  the  Agedabia  positions 
was  concluded  according  to  plan.  Benghazi  was  occupied  by  the  en- 
emy without  a  fight. 


*#♦»*♦***♦*♦**♦*♦**♦*♦**# 


9862 

-248- 


CONFIDENTIAL 
25  Dec.  19^1 
No  Items  of  Political  Importance  have  been  received. 


Situation  25  Dec.  19^1 

I.   War  In  Foreign  Waters 

1.  Enemy  Situation: 

North  Atlantic; 

British  steamer  ANDALUSIAN  STAR  (14,94}  BRT)  departed 
from  Trinidad  on  22  Dec.  bound  for  England.   On  27  Dec.  (?  -  Tr.N.) 
escort  ship  NASTURTIUM  left  Halifax,  destination  unknown. 

South  Atlantic : 

On  18  Dec.  radio  monitoring  located  the  BIRMINGHAM 
around  50°  S  34°  W.  At  the  same  time,  another  vessel  was  escort- 
ing a  steamer  in  position  04°  N  00°  W  (message  garbled),  course 
620,  speed  12  knots.  On  23  Dec.  auxiliary  cruiser  EDINBURGH  CASTLE 
was  in  the  Freetown  area,  and  auxiliary  cruiser  DUNNOTTAR  CASTLE  in 
the  Simonstown  area. 

Portuguese  authorities  state  that  the  U.S.  have  decided  to  transfer 
their  Atlantic  Fleet  into  the  Pacific. 

2.  Own  Situation; 

A  reply  was  sent  to  ship  "10"  via  Radiogram  1441  in  ans- 
wer to  the  request  for  information  concerning  the  Portuguese 
steamer  S.  THOME  (Lisbon). 


II.  Situation  West  Area 

1.  Enemy  Situation: 
No  reports. 

2.  Own  Situation: 

Atlantic  Coast; 

Mines  are  suspected  off  Lorient.  The  Naval  Staff  will 
attempt  to  utilize  intelligence  channels  to  supply  the  enemy  com- 
munication service  with  misleading  information  concerning  addition- 
al damage  sustained  by  the  ships  at  Brest  during  the  enemy  air  raid 
on  18  Dec.  Radiogram  1600  notifies  Group  West;  Admiral,  France; 
and  Commanding  Admiral,  Battleships. 


9862 

-21+9- 


25  Dec.  1^41  CONFIDENTIAL 

According  to  a  report  from  the  Naval  Attache,  Madrid,  the  tanker 
BENNO  was  not  sunk  In  Corunna  Bay  off  El  Ferrol,  hut  at  Carlno 
near  Vivero.  The  attack  took  place  right  In  the  Spanish  harbor 
by  means  of  bombs  and  presumably  one  torpedo.   The  British  machine- 
gunned  survivors  in  the  lifeboats.  Luckily  only  one  vas  killed. 
The  crew  Is  In  the  process  of  salvaging  as  much  from  the  ship  as 
possible.   The  Naval  Attache  suggests  press  propaganda  similar  to 
that  in  the  ALTMARK  case.   The  non-military  character  of  the  ship 
is  being  stressed  to  the  Spaniards.   The  captain  is  returning  im- 
mediately to  France  by  way  of  Madrid,  the  crew  will  follow  as  soon 
as  possible.   The  Naval  Staff  agrees  with  the  measures  and  sugges- 
tions of  the  Attache. 

See  Radiogram  1528  for  a  report  on  the  foregoing  from  the  Naval 
Staff "to  the  Fuehrer  and  for  notification  of  Armed  Forces  High  Com- 
mand -and  Foreign  Office. 

According  to  a  further  report  from  the  Naval  Attache,  Madrid,,  raids 
on  our  ships  based  at  Vigo  (supply  base  "Bernardo")  must  be  reckon- 
ed with.  There  are  no  Spanish  anti-aircraft  facilities  in  Vigo. 

Group  Vest  reports  a  temporary  postponement  in  the  second  departure 
of  ship  "10". 

The  Commander,  Air,  Atlantic  Coast  reports  an  attack  on  an  enemy 
destroyer  in  quadrant  BF  7695,  headed  toward  the  location  of  the 
BENTIO  (compare  War  Diary  24  Dec).  The  destroyer  was  probably 
damaged. 

Channel  Coast: 

Battery  "Grosser  Kurfuerst"  fired  twenty  rounds  on  a  con- 
voy near  Dover  on  24  Dec.  from  2110  to  2157.  The  convoy  was  located 
28  miles  off  the  coast.  Results  were  not  observed.  Nothing  to  re- 
port for  25  Dec. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea: 

Enemy  Situation: 

According  to  radio  monitoring,  two  convoys  off  Flamborough 
Head  and  Aberdeen  respectively,  were  attacked  by  planes.   Several 
reports  of  ship  casualties  in  the  area  northeast  of  Orfordness  were 
received.  Damage  caused  was  probably  due  to  mines  laid  by  our 
PT  boats. 

Own  Situation: 

No  convoy  or  minesweeping  activity  because  of  bad  weather 
conditions.   In  the  Norderney  area  a  low-flying  enemy  plane  was 
shot  at  and  hi;s  were  observed. 


-250- 


25  Dec.  19^1  CONFIDENTIAL 

2.   Norway ; 

According  to  a  cable  from  the  Finnish  envoy  to  Washington, 
diplomats  claim  that  a  British-American-Norwegian  landing  in  north- 
ern Norvay  is  being  prepared.  The  Naval  Staff  notifies  Group  North 
and  the  Admiral,  Norway  with  the  following  comment:  "The  Naval  Staff 
believes  such  a  plan  unlikely."   (See  Radiogram  1919.)  A  copy  of 
the  message  is  sent  to  Admiral,  Arctic  Ocean. 

A  landing  operation  complementing  and  taking  advan- 
tage of  present  Russian  successes  in  the  east,  is, 
of  course,  not  out  of  the  question.  The  idea  of 
severely  hampering  our  operations  in  the  Arctic  Ocean 
and  drawing  more  German  troops  from  the  Eastern  Front 
by  such  a  landing  must  tempt  the  enemy  very  much.  A 
large-scale  operation  would  at  present,  however,  make 
somewhat  too  great  demands  on  the  enemy  in  regard  to 
troops,  planes,  and  shipping  space.  The  enemy  plans, 
therefore,  are  probably  limited  only  to  a  local  in- 
vasion for  the  purpose  of  obtaining  a  foothold  In 
northern  Norway. 

Own  Situation: 

The  Armed  Forces  High  Command,  Operations  Staff,  Nation- 
al Defense  also  has  gathered  information  from  various  sources  and 
instructs  Commander  in  Chief,  Army;   Commander  in  Chief,  Navy; 
Commander  in  Chief,  Air;  and  Commanding  General,  Norwegian  Thea- 
ter as  follows: 

"information  from  various  sources  indicates  the  possibility 
that  Great  Britain  and  the  U.S.  are  preparing  a  large-scale  opera- 
tion in  the  Scandinavian  area.  If  this  is  the  case,  it  is  most 
likely  that  the  enemy  will  attempt  to  get  a  foothold  in  northern 
Norway.  His  purpose  will  be  to  cut  the  supply  route  of  our  forces 
on  the  polar  coast  by  disrupting  our  sea  communications  and  high- 
way 50,  or  at  least  to  divert  German  forces  from  the  Russian  Front 
in  Northern  and  Central  Finland.  The  starting  point  for  such  an 
operation  could  lie  in  the  Varanger  Fjord-Alta  Fjord  sector.  This 
area  is  more  vulnerable  than  Petsamo  and  Klrkenes,  or  even  the 
Narvik  area.  Enemy  occupation  of  this  area  would  greatly  increase 
enemy  prestige  in  the  Scandinavian  countries  and  would  endanger  the 
Iron  and  nickel  deposits.  The  Commander,  Armed  Forces,  Norway  is 
ordered  to  recheck  the  defense  readiness  of  the  entire  Norwegian 
area  in  cooperation  with  the  Navy  and  Air  Force.  He  is  to  report 
on  the  following  points: 

"a.  Whether  available  ammunition  and  equipment  are  adequate 
to  ward  off  a  large-scale  operation. 

"b.  What  additional  measures,  which  could  become  effective 
shortly,  are  planned  for  northern  Norway. 

"it  must  be  taken  into  consideration  that  no  large  deliveries 
of  any  kind  from  Germany  can  be  envisaged  for  the  time  being.  The 
Commanding  General,  Norway  is  therefore  ordered  to  form  a  Panzer 
unit  about  one  regiment  strong  out  of  his  own  resources  to  be  used 


-251-  9862 


25  Dec.  Ii'41  CONFIDENTIAL 

as  reserves.  The  tanks  for  this  unit  and  some  personnel  are  to  be 
brought  up  from  Germany. " 

Group  North;  Admiral,  Norway;  Admiral,  Arctic  Ocean;  Admiral, 
Polar  Coast;  and  Admiral,  North  Norwegian  Coast  received  copies 
of  the  above. 

Submarines  U  "l^V,  U  "454",  and  U  "584"  have  departed  for  opera- 
tions. Otherwise  nothing  to  report. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea; 

Norwegian  steamer  P.G.  HALLORSEN  was  sunk  by  a  mine  southwest  of 
Goeteborg  off  the  prescribed  route. 

Patrol  service  in  the  Skagerrak  was  limited  because  of  weather  con- 
ditions. Otherwise  nothing  to  report. 


f 


V.   Submarine  Warfare 

1.  Enemy  Situation; 

Lively  reconnaissance  activity  in  the  southern  rendezvous 
area.  An  airplane  reported  a  suspicious  oil  spot  west  of  the 
Scilly  Islands.  CUMBERLAND  requested  on  12  Dec.  that  the  net  at 
Reykjavik  be  opened  to  permit  her  entrance  into  the  harbor.  Swedish 
motor  ship  SHANTUNG  sent  an  SOS  from  a  position  about  300  miles  south 
of  Iceland.  The  ship  is  being  abandoned  for  unknown  reason. 

2.  Own  Situation; 

Report  in  War  Diary,  Part  B,  Vol.  IV. 

The  Naval  Attache  at  Madrid  reports  that  on  24  Dec.  at  noon  a  Brit- 
ish protest  was  handed  to  the  Spanish  Navy  Department,  concerning 
the  fact  that  German  submarines  are  getting  supplies  at  Vigo.  The        £ 
British  Naval  Attache  explained  on  this  occasion  that  survivors  of 
a  German  submarine  at  Gibraltar  had  carelessly  revealed  certain 
bits  of  information  concerning  supply  operations  at  Vigo,  such  as 
the  fact  that  submarines  enter  the  harbor  under  electric  motors 
and  come  alongside  the  BESSEL.  So  far  the  Attache  has  been  inform- 
ed only  confidentially  by  a  personal  acquaintance.   (See  Radiogram 
•1658.) 

This  excessive  garrulity  will  have  serious  consequences  from  two 
points  of  views.  First,  the  supply  operation  "Bernardo"  will  have 
to  cease  for  a  comparatively  long  time,  and  the  ships  there  will 
be  endangered.  Secondly,  the  legal  position  in  the  case  of  BENNO 
will  be  altered  to  the  advantage  of  the  British. 


9862 

-252- 


25  Dec.  1941  CONFIDENTIAL 

The  order  issued  "by  the  Commanding  Admiral,  Submarines  supplementary 
to  operation  order  Atlantic  No.  46  concerning  the  sudden  appearance 
of  German  submarines  in  the  American  safety  zone  (operation  known  as 
"Paukenschlag")  indicates  that  submarines  U  "502",  U  "125",  U  "109", 
U  "123",  U  "66  ,  and  U  "130"  are  proceeding  separately  in  two  groups, 
the  first  three  boats  as  Group  "Bleichrodt  ,  the  remaining  ones  as 
Group  "Hardegen".   They  are  proceeding  to  60°  W  and  45°  W  respect- 
ively, and  thereafter  will  simultaneously  go  to  their  assigned  at- 
tack areas. 

War  Diary,  Part  C,  Vol.  IV  contains  an  analysis  by  the  Commanding 
Admiral,  Submarines  concerning  submarine  operations  in  the  area 
west  of  Gibraltar  in  view  of  the  concentration  there  of  enemy  de- 
fense forces  from  the  Atlantic,  which  is  now  free  from  submarines. 
The  suggestion  is  also  made  that  the  eight  boats  in  question  be  used 
in  the  Azores  area  with  the  permission  of  the  Naval  Staff,  Opera- 
tions Division,  as  per  l/Skl  I  op  2183/41  op  Gkdos.  Chefs. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

Nothing  to  report  during  the  day.  During  the  night  of 
25  Dec,  twenty,  five  airplanes  were  sent  out  to  mine  the  Thames, 
ten  to  attack  shipping  targets.  A  steamer  (3,000  BRT)  was  sunk  off 
Flamborough  Head;   east  of  Hartlepool  a  steamer  (6,000  BRT)  was 
heavily  damaged.  A  northbound  convoy  was  attacked  in  the  outer 
Firth  of  Forth  and  one  steamer  (3,000  BRT)  was  damaged.  Two  further 
steamers  of  3,000  BRT  and  5,000  BRT  were  damaged  north  of  Fife  Ness. 

2.  Mediterranean  Area; 

Thirteen  Junker  88 's  laid  mines  in  the  harbor  and  approach- 
es of  Benghazi,  simultaneously  staging  nuisance  raids  on  targets 
ashore. 

3.  Eastern  Front; 

Light  activity  by  our  forces  in  support  of  the  Array. 

4.  Items  of  Special  Importance; 

The  testing  of  Japanese  aerial  torpedoes  (German  designa- 
tion LT  850)  has  begun  at  Travemuende  Proving  Grounds.  According 
to  the  Air  Ministry,  operational  use  will  probably  not  follow  be- 
cause the  number  available  is  too  small. 

See  Radiogram  1451  for  information  to  this  effect  to  the  Naval 
Liaison  Officer  at  Fuehrer  Headquarters,  Captain  von  Puttkamer. 


VII.  Warfare  in  the  Mediterranean 


-253-  9862 


25  Dec.  1941  .    CC_.     "IAL 

1.  Ir.emy  Situation: 

One  cruiser  and  four  destroyers  cane  into  Valetta  on 
24  Dec.  At  Malta  there  vere  five  air  raid  alarms  betveen  2000 
and  C117  during  the  night  of  24  Dec  At  noon  of  24  Dec.  Alexan- 
dria rebroadcast  an  SOS  from  the  Greek  steamer  KEXAS  (1,753  BRT) 
which  vas  being  attacked  by  a  plane  and  requested  an  escort.  Ra- 
dio monitoring  located  vessels  of  the  7th  Cruiser  Division  and  of 
the  Coastal  Squadron  in  the  Marmarica  Coast  area. 

An  Italian  re;:r:  states  that  two  British  searer.  vere  rescued  (Ton 

a  life  raft  near  Misurata  by  Italian  torpedo  boat  CALLIOPE  on  24 
Dec . .   They  vere  from  the  cruiser  NEPTUNE  which  was  sunk  by  a  tor- 
pedo attack  on  19  Dec.  while  en  route  from  Malta  to  Alexandria. 
According  to  a  further  Italian  report,  a  strong  contingent  of  De 
Gaullist  troops  was  transferred  from  Haifa  to  the  Libyan  front  on 
16  Dec.   No  change  in  the  enemy  situation  on  25  Dec. 

2.  Situation  Italy; 
Nothing  to  report. 

3.  Transport  of  Supplies  to  North  Africa: 

Supplies  and  reinforcements  by  submarines  and  destroyers 
executed  according  to  plan.   Naval  barge  "150"  destroyed  near  Sol- 
ium by  enemy  artillery.   Porto  Flutto  mole  in  3enghazi  was  blown  up 
after  departure  of  the  hospital  ship  TOSCANA  and  torpedo  boat  CAL- 
LIOPE. .  Net  barrages  were  sunk  by  gunfire. 

Armed  Forces  High  Command,  Operations  Staff,  National  Defense  issues 
the  following  directive  concerning  supply  traffic  to  North  Africa 
and  Crete: 

"The  most  Important  task  of  the  German  and  Italian  Armed  Forces 
is  to  support  supply  operations  and  to  bring  up  reinforcements  for 
our  forces  fighting  in  North  Africa.  Since  transport  and  supply 
traffic  to  Crete  also  continues  to  be  very  important,  it  is  urgently 
requested  that  shipping  space  and  escort  forces  be  mace  available 
at  the  earliest  opportunity.   The  German  General  at  Headquarters, 
Italian  Armed  Forces  is  therefore  asked  to  investigate  in  coopera- 
tion with  the  Commanding  General,  Armed  Forces,  South  and  the  Com- 
manding General,  Armed  Forces,  3alkans  when  and  to  what  extent  snip- 
ing space  and  escort  forces  from  the  Aegean  area  can  be  diverted  in 
order  to  recommence  shipments  to  Crete  on  an  increased  scale.  The 
results  are  to  be  reported."  (See  Radiogram  1921.) 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

According  to  a  report  from  German  Naval  Command,  Italy, 
Commanding  General,  South  made  the  following  statement  to  the  Com- 
mander, Armed  Forces,  Balkans: 

"In  view  of  the  over-all  situation  in  the  Mediterranean  area, 
Crete  takes  a  position  secondary  to  that  of  the  present  main 


»M1 

-254- 


25  Dec.  19^1  CONFIDENTIAL 

theater  of  operations.   Concentration  of  the  naval  forces  is  urgent- 
ly necessary.   However,  the  defense  of  the  Aegean  Sea  will  be  made 
more  effective  than  heretofore  by  means  of  pursuit  and  reconnaissance 
planes. " 

The  Admiral,  Aegean  Sea  sends  the  following  situation  analysis  to 
the  Commanding  General,  Armed  Forces,  Balkans  and  Group  South  (copies 
are  sent  to  German  Naval  Command,  Italy  and  X  Air  Corps): 

"1.   The  movement  of  the  African  front  to  the  west 
causes  German  airports  and  naval  bases  to  fall  into  enemy  hands. 
Thereby,  the  enemy  moves  considerably  closer  to  Crete  and  Southern 
Greece.   This  may  well  make  it  more  difficult  to  patrol  the  area 
between  Crete  and  Africa  and  to  fight  enemy  naval  forces  in  that 
area. 

"2.  Air  base  Crete  Increases  in  importance  and  at 
the  same  time  is  exposed  to  greater  danger.  Enemy  surface  forces 
are  more  likely  to  make  their  appearance  north  of  Crete,  and  subma- 
rine activity  may  increase. 

"J>.      Up  to  now  it  has  been  impossible  to  stock  up 
supplies  of  arms,  fuel,  and  provisions  in  Crete.   It  takes  several 
months  to  transport  occupation  troops  there.   The  situation  cannot 
be  expected  to  improve  with  present  transport  facilities  and  escort 
forces.   On  the  contrary,  we  have  to  expect  that  the  supply  and 
transport  situation  will  become  even  more  acute. 

"4.  It  is  therefore  necessary  to  take  immediate 
large-scale  measures  to  transport  troops  and  stock  up  arms  in  a 
hurry. 

"5.  A  temporary  assignment  of  six  Italian  destroyers 
to  carry  troops,  twelve  vessels  suited  as  convoy  escorts,  and  six 
fast  freighters  is  necessary.  Air  cover  would  have  to  be  increased 
proportionately. 

"6.   The  operation  can  be  undertaken  only  if  Super- 
marina,  Rome  makes  available  the  fuel  oil  and  coal  for  these  ves- 
sels and  naval  forces.  At  this  time,  the  fuel  oil  situation  here 
is  acute. 

"7.  Furthermore  it  would  be  wise  to  consider 
whether  some  of  the  troops  could  be  transported  there  by  plane. 

"8.   If  this  analysis  of  the  situation  is  correct, 
it  is  temporarily  necessary  to  concentrate  our  efforts  on  supply 
shipments  to  Crete  instead  of  to  Africa.   Hereabouts  it  is  believed 
that  measures  must  be  put  into  effect  immediately  in  order  to  bene- 
fit from  a  possible  lull  in  the  fighting  while  the  enemy  is  re- 
grouping his  forces  for  a  new  objective." 

Group  South  agrees  with  the  various  points  of  this  analysis,  but 
does  not  believe  at  this  time  that  the  recapture  of  Crete  is  an 
immediate  British  aim.   It  is,  however,  of  the  opinion  that  the 
operations  in  regard  to  Crete  should  be  commenced  as  soon  as  the 


-255- 


25  Dec.  19^1  CONFIDENTIAL 

situation  in  Tripoli  permits  a  withdrawal  of  Italian  transport  anc 
escort  vessels  to  the  Aegean  Sea,  if  only  for  a  short  time.   This 
is  necessary  since  it  will  become  impossible  to  continue  the  ship- 
ment of  supplies  to  the  poorly  supplied  island  as  soon  as  the  Brit- 
ish launch  an  attack  on  Crete. 

The  Naval  Staff  fully  agrees  with  the  analysis  sub- 
mitted by  the  Operations  Staff  responsible  for  the 
Crete  area.   However,  it  does  not  consider  itself 
in  a  position  to  make  decisions  in  the  matter,  as 
requested  by  Group  South,  as  long  as  every  effort 
is  to  be  directed  toward  shipping  all  available  for- 
ces and  materiel  to  Tripoli.   Quite  aside  from  this, 
it  is  definitely  the  responsibility  of  the  respect- 
ive Commander,  Armed  Forces  to  determine  where  the 
main  emphasis  in  supply  operations  should  be  put  at 
any  time. 

The  Commanding  General,  Armed  Forces,  Balkans  issues  the  following 
directive  to  General  Plenipotentiary,  Serbia;   Commanding  General, 
Southern  Greece;   Commander,  Fortification  Crete;   with  copies  to 
Commanding  General,  South;   X  Air  Corps,  and  Group  South: 

"The  development  of  the  situation  in  Africa,  transport  concen- 
trations in  Gibraltar  and  British  home  waters,  and  our  own  reverses 
necessitate  a  check  on  preparedness  for  battle  in  all  areas.   If 
necessary,  forces  should  be  equalized  within  individual  areas.   No 
recall  from  leave.  Transport  of  the  164th  Division  to  Crete  remains 
top  priority.   The  "Siena  squadron  should  attempt  to  make  three 
trips  every  two  weeks." 

The  Commanding  General/  Armed  Forces,  Balkans  intends  to  call  a 
conference  of  commanding  generals  and  admirals  in  the  beginning 
of  January  at  Headquarters,  Commanding  General,  Armed  Forces,  Bal- 
kans.  All  questions  concerning  preparedness  will  be  discussed. 
Group  South  and  X  Air  Corps  are  requested  to  participate  in  the  con- 
ference. 

At  this  conference,  the  Commanding  Admiral,  Group  South  will  have 
the  opportunity  to  see  to  it  that  the  above  points,  regarding  the 
endangered  situation  of  supplies  and  transports  to  Crete,  are  given 
full  consideration. 

Black  Sea: 

Nothing  to  report. 


VIII.  Situation  East  Asia: 
Nothing  to  report. 


9862 

-256- 


25  Dec.  1941 


CONFIDENTIAL 


IX.  Army  Situation 

1.  Russian  Front; 

Southern  Army  Group: 

Fighting  continues  around  Sevastopol,  near  Belbek  and 
Lyubimovka.   A  strong  enemy  attack,  in  part  still  continuing,  was 
launched  on  the  northern  flank  of  the  1st  Panzer  Army  against  the 
entire  front  of  the  Italian  Division  Celere.   Enemy  attacks  were 
repulsed  on  the  17th  Army  sector.   Three  armored  trains  were  re- 
ported near  Debaltsevo,  hut  no  damage  could  he  inflicted  with  avail- 
able weapons . 

Central  Army  Group: 

The  enemy,  supported  by  medium- heavy  and  heavy  tanks, 
broke  through  the  2nd  Army  sector  near  Kolodes  and  Petrovskoye. 
The  156th  Rifle  Regiment,  fighting  to  the  end,  was  wiped  out.   There 
are  no  more  German  troops  ahead  of  the  break-through.   In  the  2nd 
Panzer  Army  sector,  the  XLVII  Army  Corps  has  withdrawn  to  the 
Shushmlna-Lobahovo-Shertova  Line,  and  the  LIII  Army  Corps  to  the 
western  bank  of  the  Oka.  There  are  not  sufficient  troops  to  regain 
the  ground  lost. 

In  the  4th  Army  sector,  the  enemy  west  of  Kai-uga  is  advancing  north 
over  the  Oka.  Strong  enemy  attacks  along  the  whole  front  of  the 
XIII,  XII,  LVII,  and  XX  Army  Corps  were  repulsed.  Also  in  the  j5rd 
Panzer  Group  area  heavy  enemy  attacks  had  to  be  repulsed  by  the  VII, 
IX,  and  XLVI  Army  Corps. 

Northern  Army  Group: 

Enemy  attacks  across  Lake  Ilmen  at  the  XXXIX  and  I  Army 
Corps  sectors  were  unsuccessful.  The  21st,  11th,  and  254th  Infantry 
Divisions  withdrew  to  new  positions  according ^to  plan.  The  enemy 
was  repulsed  in  attacks  on  Maluksa  and  the  Leningrad  front. 

2.  Finnish  and  Norwegian  Front: 
Local  activity  only. 

3.  North  Africa: 

The  enemy  reconnoitered  the  Agedabia  positions.   Starting 
out  the  evening  of  24  Dec,  Group  Cruewell  reached  the  area  south 
of  Agedabia  the  afternoon  of  26  Dec.  (must  be  25  Dec,  Tr.N.),  hav- 
ing quickly  broken  enemy  resistance  north  of  the  town. 

German  Naval  Command,  Italy  reported  on  24  Dec.  the  following  tele- 
type received  from  the  German  General  at  Headquarters,  Italian 
Armed  Forces: 

"1.   General  Rommel  has  requested  that  General  Caval- 
lero  and  the  Duce  be  notified  of  the  following: 

"a.   In  view  of  the  condition  of  our  troops  and 
the  acute  fuel  situation,  our  front  is  too  long.  Therefore  it  is 


9862 


-257" 


25  Dec.  19^1  CONFIDENTIAL 

doubtful  whether  an  attack  launched  by  the  enemy  for  the  purpose  of 
forcing  a  decision  in  the  Agedabia  area  could  successfully  be  re- 
pulsed.  If  German  and  Italian  troops  are  annihilated  in  the  unfav- 
orably situated  Agedabia  position,  the  Duce's  order  to  hold 
Tripolitania  to  the  last  cannot  be  carried  out.   The  Panzer  Group 
is  therefore  forced  to  fight  a  retreating  action  in  the  Agedabia 
position,  and  to  withdraw  the  mass  of  troops  into  a  considerably 
more  favorable  area  south  of  Arco  dei  Filieni  (west  of  SI  Agheila). 
If  it  is  possible  to  reorganize  the  Italian  units  soon,  and  to  build 
up  their  fighting  strength,  the  enemy  will  ultimately  be  brought  to 
a  stop  in  this  position. 

"b.   The  Bardia  and  Solium  fronts  cannot  be  re- 
lieved in  the  near  future,  nor  can  the  troops  there  be  evacuated. 
The  length  of  time  they  can  hold  out  depends  on  the  supplies  at 
hand  and  on  the  strength  of  the  fortification,  which  has  its  limits, 
after  all.   General  Rommel  has  therefore  ordered  Generals  Schmidt 
and  de  Georgis  to  continue  resistance,  but  he  has  also  empowered 
them  to  surrender  honorably  if  they  consider  that  further  resistance 
is  useless  after  all  ammunition  and  supplies  aae  exhausted.   The 
vain  sacrifice  of  approximately  15,000  German  and  Italian  soldiers         *~ 
cannot  be  justified.  \ 

"2.   The  Duce  has  thereupon  issued  the  following 
order  to  the  Italian  High  Command  in  North  Africa  and  empowered  me 
to  inform  the  Panzer  Group  directly: 

"concerning  (a):   The  plans  of  the  Panzer  Group 
are  approved.   However,  the  great  importance  of  Marada  Oasis  for 
the  new  position  is  pointed' out.  Marada  must  be  held  as  a  cover 
for  the  southern  flank  and  as  an  initial  position  for  an  offensive 
defense  against  enemy  attempts  at  encirclement. 

"concerning  (b):  It  will  be  possible  to  con- 
tinue resistance  on  the  Bardia  and  Solium  fronts,  since  provisions 
and  arms  will  be  supplied  from  Italy.   The  Duce  places  great  value 
on  holding  this  front  as  long  as  possible." 


**♦»•**»♦♦#**♦#*#*******♦* 


( 


9862 

-258- 


CONFIDENTIAL 

26  Dec.  1941 

Items  of  Political  Importance 

France; 

The  occupation  of  the  two  Newfoundland  islands  St.  Pierre  and 
Miquelon,  executed  on  25  Dec.  by  De  Gaullist  naval  forces  under 
the  command  of  Admiral  Muselier,  apparently  took  place  without 
previous  agreement  with  Great  Britain,  Canada,  and  the  U.S..  Ac- 
cording to  Reuter,  the  U.S.  State  Department  considers  this  ac- 
tion arbitrary  and  contrary  to  the  wishes  of  all  interested  par- 
ties.  Official  French  circles  are  pleased  with  that  interpreta- 
tion. 

Turkey ; 

According  to  a  confidential  report  from  the  Turkish  envoy  to  Prime 
Minister  Antonescu,  the  Turkish  President  declared  a  month  ago  that 
Turkey's  entry  into  the  war  on  the  Russian  side  is  completely  un- 
popular.  In  principle,  Turkey  is  on  the  side  of  Germany  in  the 
Eastern  Campaign,  but  the  situation  in  the  Black  Sea  is  not  yet  clear, 
and  the  situation  in  the  Mediterranean  gives  Turkey  as  yet  no  freedom 
of  action. 

U.S.A.; 

Churchill's  speech  before  the  U.S.  Congress  stressed  that  it  was 
lucky  for  England  that  Germany  did  not  immediately  invade  the  Brit- 
ish Isles  in  the  summer  of  1940  with  Japan  entering  the  war  at  the 
same  time.   The  end  of  1942  will  find  the  Anglo-Saxons  in  a  much 
better  position  than  today,  and  in  19^j5  they  will  be  able  to  take 
the  initiative  on  a  larger  scale.  For  a  detailed  extract  of  the 
speech,  see  Political  Review  No.  30J>,    Paragraph  J>. 

China ; 

General  Wavell  arrived  in  Chungking  on  22  Dec.  for  a  conference  with 
Chiang  Kai  Shek. 


Special  Items; 

The  situation  report  on  war  industries  for  the  month  of  November  by 
the  Armed  Forces  High  Command,  War  Economy  and  Armaments  Division 
revealed  that  already,  because  of  raw  materials  alone,  it  was  quite 
impossible  to  fill  the  needs  of  even  the  top  priority  programs  to 
the  extent  planned  so  far.   Considerable  cuts  will  therefore  have 
to  be  effected  throughout.   Next  to  the  manpower  shortage,  coal  and 
power  supply  shortages  stepped  into  the  foreground  with  increasing 
prominence.   There  is  also  the  problem  of  transportation  to  be  faced 
during  the  coming  winter.  Larger-scale  inductions  into  military 
service  have  a  direct  effect  on  the  extent  of  armament  production, 
because  there  are  no  more  reserves  available. 


9862 

-259- 


26  Dec.  19^1  CONFIDENTIAL 

It  is  expected  that  the  situation  will  he  relieved  by  the  release  of 
all  miners  and  20,000  armament  technicians  from  the  Eastern  Army. 
Of  the  450,000  Russian  prisoners  of  war  in  Germany,  200,000  have 
been  put  to  work  in  agriculture.   250,000  are  still  physically  dis- 
abled so  that  the  transfer  of  French  prisoners  of  war  into  the  arma- 
ment industries  is  delayed. 

The  shortage  in  shipping  space  was  the  salient  factor  in  maritime 
shipping.   The  raw  material  situation  is  acute,  particularly  as  re- 
gards the  non-ferrous  group.   Power  supplies  had  to  be  curtailed 
considerably.   The  problem  of  nitrogen  is  gradually  becoming  one  of 
prime  importance  to  war  industry  since  nitrogen  is  being  used  in- 
creasingly in  armament  production.   The  mineral  oil  situation  is 
discussed  elsewhere. 

The  food  situation  is  unfavorably  affected  by  the  manpower  shortage 
and  bad  weather.  Although  it  is  still  bearable  in  Germany,  the  sit- 
uation in  Poland,  Belgium,  and  Greece  is  considered  especially  bad. 


Situation  26  Dec.  19*H 

I.   War  in  Foreign  Waters 

1 .   Enemy  Situation: 

Special  Items; 

Compilation  of  enemy  news  received  by  radio  decoding  and 
monitoring  up  to  21  Dec.  1941  in  Radio  Intelligence  Report  No.  51/^1 
Kaval  Staff,  Communications  Division,  Radio  Intelligence  Branch. 

North  Atlantic : 

Nothing  to  report. 

South  Atlantic : 

American  steamer  COMMERCIAL  TRADER  (2,600  BRT)  sent  the 
following  distress  signal  330  miles  east  of  Trinidad:   One  enemy 
naval  surface  vessel,  southerly  course,  speed  8.5  knots."  On  2k 
and  25  Dec,  two  destroyers  and  a  corvette  on  a  southerly  course 
were  sighted  off  the  Canaries  between  Cape  Juby  and  Fuerteventura. 
According  to  an  Italian  report,  they  are  waiting  for  a  convoy.  A 
further  Italian  report  states  that  a  U.S.  half -flotilla  consisting 
of  two  light  cruisers  and  four  destroyers  was  lying  in  Capetown, 
and  that  further  light  U.S.  vessels  were  sighted  in  the  latitude  of 
Mossel  Eay. 

Indian  Ocean: 

On  21  Dec.  convoy  BM  9  put  to  sea  from  Bombay  bound  for 
Singapore.  According  to  an  agent's  report  from  Istanbul,  25,000 
men,  mostly  Indians,  were  loaded  on  ships  in  Basra.   To  begin  with, 
a  total  of  100,000  men  are  to  be  shipped  to  Burma,  and  then  200,000 


9862 
-26O- 


26  Dec.  19^1  CONFIDENTIAL 

to  Africa,  so  that  only  200,000  men,  mostly  British  and  Australian, 
will  then  remain  in  Iraq. 

These  figures  seem  to  he  rather  high. 

2.   Own  Situation; 

In  St.  Nazaire  an  Italian  submarine  landed  one  officer 
from  ship  "16",  and  three  officers  and  sixty  six  men  from  the 
PYTHON. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

Air  reconnaissance  reported  two  vessels,  presumably  de- 
stroyers, 65  miles  north  of  Brest.   In  the  evening  a  convoy  consist- 
ing of  thirty  steamers  was  sighted  southwest  of  Milford,  heading  for 
port.  At  noon  two  cruisers  were  located  off  the  Scilly  Islands  on 
a  westerly  course." 

2.  Own  Situation; 

Atlantic  Coast; 

Enemy  air  activity  over  St.  Nazaire,  Brest,  and  Nantes  on 
25  Dec.  is  belatedly  reported.  No  bombs  were  dropped.  Repeated 
alarms  between  1030  and  2100.  The  area  off  Lorient  which  has  been 
closed  because  mines  are  suspected  there,  has  been  extended. 

The  Commanding  Admiral,  Battleships,  substantiating  the  report  from 
the  Brest  shipyard  (see  War  Diary  25  Dec),  indicates  that  the  de- 
parture of  the  SCHARNH0RST  will  be  delayed  four  weeks  as  a  result  of 
the  damage  to  the  dock.  Battle  readiness  will  be  delayed  an  equiva- 
lent length  of  time  since  technical  training  cannot  be  carried  on 
as  it  should  while  the  ship  is  in  dry  dock.  The  GNEISENAU  remains 
out  of  dock  and  is  undergoing  overhauling  at  another  pier.   (See 
Radiogram  I830. ) 

The  Naval  Attache,  Madrid  reports  that  the  British  Naval  Attache 
handed  a  written  protest  to  the  Spanish  Naval  Staff  at  noon  of 
24  Dec.  claiming  that  three  British  steamers  were  sunk  within 
Spanish  territorial  waters  during  the  last  three  weeks.  They  are 
the  GRALHEAD,  FJORD,  and  HELLEN,  sunk  off  Cape  Negro  on  the  night 
of  20  Dec,  while  en  route  from  Gibraltar  to  Mel II la.  Nothing  was 
known  about  the  HELLEN  up  to  now.  The  Spaniards  doubt  a  violation 
of  territorial  waters  since  no  reports  to  that  effect  are  said  to 
be  at  hand  (see  Radiogram  1J545). 

'This  "step  evidently  served  to  establish  the  legal 
precedent  for  the  attack  on  the  BENN0. 

A  further  report  from  the  Naval  Attache,  Madrid  states  that  the 
Chief  of  Staff  of  the  Spanish  Navy  is  investigating  possibilities 


9862 

-261- 


26  Dec.  1941  CONFIDENTIAL 

of  salvaging  the  BENNO.   The  Spanish  Navy  has  sent  the  tanker  PLUTO 
to  take  over  the  remaining  cargo  from  the  BENNO.   Several  Spanish 
civilians  were  slightly  vounded  during  the  attack  on  the  BENNO.   The 
Spanish  prt  *s  reports  only  a  British  report  about  the  sinking  of  a 
German  auxi- Lary  cruiser  in  the  Bay  of  Biscay.  British  radio  de- 
clares that  the  sinking  took  place  outside  of  territorial  vaters. 
The  Embassy  so  far  has  received  no  instructions  to  protest.   The 
Attache  requests  that  the  fact  that  the  attack  occurred  on  a  ship 
anchored  right  in  the  middle  of  a  Spanish  harbor  be  energetically 
emphasized. 

German  propaganda  is  so  slow  in  making  itself  felt 
since  no  newspapers  appeared  during  the  first  and 
second  Christmas  holiday. 

The  Naval  Attache,  Madrid  reports  further  that  on  24  Dec.  the  Brit- 
ish Naval  Attache  demanded  the  withdrawal-  of  German  ships  from  Vigo 
to  Southern  France,  i.e.,  out  of  presumably  absolutely  undisputed 
territorial  waters,  while  at  the  same  time  the  attack  on  the  BENNO 
was  under  way.  As  a  condition  for  continuing  shipments  of  fuel  and 
food  to  Spain,  the  enemy  is  evidently  demanding  the  withdrawal  of 
German  tankers,  in  other  words,  the  right  to  exercise  control  over 
Spanish  harbors.   It  is  as  yet  impossible  to  predict  what  the  Span- 
ish attitude  will  be,  particularly  since  the  Minister  for  Foreign 
Affairs  and  the  German  Ambassador  will  be  away  until  the  New  Year 
(see  Radiogram  1705). 

Ten  to  twelve  men  of  the  BENNO  crew  are  remaining  in  Carino  for 
salvage  work.  The  remainder  will  leave  27  to  28  Dec.  via  Ferrol 
for  France. 

Channel  Coast: 

Nothing  to  report. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea: 

Enemy  Situation: 

According  to  radio  decoding,  on  24  Dec.  at  2555  a  trawler 
picked  up  the  survivors  of  the  British  steamer  MERCHANT  (4,615  BRT) 
which  was  damaged  by  a  mine  off  Yarmouth  and  was  to  be  towed  in  on 
25  Dec.  Minesweeper  HENRIETTE  sank  on  26  Dec.  in  the  Grimsby 
area.   Steamer  HULK  SUNDERLAND  sank  off  Cromer,  time  unknown.   In 
the  Yarmouth  area  five  mine  explosions  were  reported  on  the  inner 
convoy  route. 

Own  Situation: 

Only  a  part  of  the  scheduled  convoy  operations  was  exe- 
cuted, and  minesweeping  was  interrupted  because  of  bad  weather. 


9862 

-262- 


♦ 


26  Dec.  1941  CONFIDENTIAL 

2.   Norway : 

Enemy  Situation: 

A  half- submerged  submarine  was  sighted  In  the  mouth  of 
Porsanger  Fjord.  By  means  of  Intercepted  submarine  radio  telephone 
communications  on  the  morning  of  26  Dec,  Russian  submarines  were 
located  near  Nordkyn,  British  submarines  near  Soroe. 

One  British  cruiser  and  three  destroyers  entered  Vest  Fjord  during 
the  morning  and  landed  three  boats  near  Glaapen.  According  to  air 
reconnaissance  which  had  continuously  shadowed  this  unit  since  1214 
and  which  had  been  successfully  repulsed  by  anti-aircraft  fire  in 
attacks  on  the  destroyers,  the  unit  stood  east  of  Mosksnesoe  at 
1440.  Radio  monitoring  reports  that  convoy  PQ  6  is  under  way,  and 
that  PQ  7  will  depart  in  the  next  few  days. 

Own  Situation; 

The  vessels  which  penetrated  into  the  Vest  Fjord  destroy- 
ed telephone  communications  with  Glaapen,  captured  patrol  boat 
GEIER,  and  left  with  it  in  a  westerly  direction.  A  Norwegian 
freighter  was  stopped  in  the  middle  of  Vest  Fjord  and  departed  on 
a  southwesterly  course,  presumably  under  an  enemy  prize  crew. 
Another  steamer  was  sighted  burning  in  the  Vest  Fjord. 

At  1206  the  8th  Destroyer  Flotilla  and  the  8th  PT  Flotilla  received 
operational  orders  in  view  of  the  enemy  situation.   The  8th  Destroyer 
Flotilla  was  to  patrol  a  strip  west  of  the  Lofoten  Islands  and  to 
operate  against  the  enemy  unit.  Since  the  flotilla  did  not  get 
under  way  until  1645,  it  seemed  unlikely  that  contact  with  the  en- 
emy could  still  be  established,  and  the  flotilla  was  therefore  re- 
called. PT  boat  "45"  sustained  damage  by  scraping  bottom  and  pro- 
ceeded to  Harstad. 

Anti-submarine  activity  off  Soroe  was  interrupted  due  to  bad  weather. 
The  eastern  exit  of  Groetsund  was  closed  because  mines  are  suspected 
there.  Steamer  KONG  DAG  was  torpedoed  at  the  entrance  to  Ulfa  Fjord. 
At  1600  a  raft  with  survivors  was  picked  up  near  Breivik,  and  at 
1900  one  boat  with  soldiers,  evidently  frozen  to  death. 

The  rumors  of  a  Christmas  raid  on  the  northern  coast 
of  Norway  were  therefore  not  entirely  unfounded.  As 
far  as  can  be  judged  at  present,  today's  undertaking 
does  not  point  to  a  large-scale  operation,  however. 
We  must  wait  for  additional  reports. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.   Enemy  Situation; 

After  further  interrogation  of  the  captured  Russian,  Cap- 
tain Evdekimov,  the  locations  of  three  Russian  mine  fields  and  safe- 
ty routes  in  the  Hogland-H'i,i.goe  area  were  revealed.  The  following 


9862 
-263- 


26  Dec.  19^1  CONFIDENTIAL 

ships  were  ready  for  action  in  the  middle  of  November:   OKTYABRSKAYA 
REVOLUTSIA,  MAKSIM  GORKI,  KIROV,  mine  cruiser  URAL,  flotilla  leader 
LENINGRAD,  five  destroyers,  one  torpedo  "boat,  seventeen  minesweepers, 
one  gun  boat,  five  icebreakers,  and  an  unknown  number  of  submarines 
and  FT  boats.   Nothing  definite  is  known  about  how  they  are  to  be 
used  in  the  spring  of  1942.   It  is  assumed  that  they  will  be  used  for 
defense  against  possible  German  Fleet  attacks  in  the  Seiskari  lati- 
tudes, and  as  Army  support.   If  Kronstadt  and  Leningrad  should  fall, 
the  vessels  will  be  destroyed. 

Originally,  the  operational  purpose  of  the  Baltic  Fleet  was  purely 
defensive.   The  mine  barrages  in  the  Gulf  of  Finland  are  located  as 
follows:   1.   Hangoe-Odensholm,   2.   latitude  Hogland,   J.   latitude 
Seiskari.   Information  on  the  strength  of  the  Polar  Sea  Fleet  fol- 
lows:  Destroyers  KARL  LIEBKNECHT,  URITSKI,  BYKOV,  and  three  GNIEVNY 
class  ships,  three  torpedo  boats  of  the  BURIYA  class,  three  subma- 
rines of  the  LENINETS  class,  three  submarines  of  the  YAKOBINETS  class, 
six  submarines  of  the  SHCHUKA  class,  three  submarine  of  the  S  class, 
and  several  of  the  M  class. 

More  details  are  contained  in  a  teletype  from  the  German  Intelligence 
Service,  Reval  (Tallinn);   see  l/Skl  57054  geh.  in  War  Diary  Files 
"Barbarossa". 

2.   Own  Situation: 

Nothing  to  report. 


V.   Merchant  Shipping: 

See  Brief  Report  No.  56  of  the  Report  Series  by  Naval  Staff,  Naval 
Intelligence  Division  "Foreign  Merchant  Shipping"  for  the  following 
information:  Russian  icebreakers  in  the  White  Sea,  Baltic  Sea, 
Black  Sea,  Caspian  Sea,  and  East  Asia;  reports  on  increases  in 
British  war  insurance  rates  in  the  Atlantic  and  Pacific;   continua- 
tion of  Portuguese  shipping  to  the  U.S.;   troop  transport  situation 
on  the  Cape town- India  run,  etc. 


VI.   Submarine  Warfare 

1.  Enemy  Situation: 

ILLUSTRIOUS  is  expected  in  the  Liverpool  area  within  the 
next  few  days . 

2.  Own  Situation: 

Following  most  welcome  reports  from  returning  submarines, 
the  results  of  the  operation  against  convoy  HG  77  have  increased  to 
nine  steamers  sunk  and  one  damaged ?  in  addition  to  the  destruction 
of  the  AUDACITY  (UNICORN). 


5 


9862 
-264- 


* 


26  Dec.  19*U  CONFIDENTIAL 

According  to  a  report  from  the  Naval  Attache,  Madrid,  the  British 
Naval  Attache  declared  orally  when  he  delivered  the  protest  on  2k 
Dec.  that  submarine  U  "kjk"   was  brought  into  Gibraltar  by  the  Brit- 
ish. According  to  information  from  its  crew  members,  the  boat  had 
received  supplies  in  Vigo  during  the  night  of  14  Dec.  Besides 
that,  the  bill  of  lading  for  the  delivery  of  German  medicinal  pro- 
ducts, with  a  handwritten  remark  "Received  -  320  Vigo,  15  Dec.  1941", 
was  captured.  Although  an  official  British  protest  has  not  yet  been 
made,  the  Naval  Attache  urgently  requests  that  Supply  Station,  Spain 
be  temporarily  discontinued  (Radiogram  1450). 

The  Commanding  Admiral,  Submarines  has  been  given  instructions  to 
that  effect.  Further  situation  report  in  War  Diary,  Part  B,  Vol.  IV. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

For  results  of  air  reconnaissance,  see  Situation  West  Area 
and  Norway.  Ten  of  our  planes  operated  against  ship  targets  on  the 
night  of  26  Dec. 

2.  Mediterranean  Area: 

Balloons  carrying  British  explosive  charges  were  salvaged 
in  the  upper  valleys  west  of  Turin  on  25  Dec.  Bombing  attacks  by 
our  planes  on  Gazala  and  El  Adem  airports  as  well  as  on  Malta.  Good 
results  were  observed.   Two  Hurricanes  were  shot  down  by  German 
fighter  escorts. 

J>.       Eastern  Front: 

Since  break  of  day,  heavy  enemy  air  raids  on  our  positions 
at  Sevastopol  and  near  Kerch.  During  the  afternoon,  we  fought  very 
fiercely  against  enemy  landings.  Reports  up  to  now  Indicate  that  in 
these  attacks  two  medium  transports  were  sunk  and  three  others  dam- 
aged. 


VIII.  Warfare  in  the  Mediterranean 

1.   Enemy  Situation: 

The  Chief  of  the  Mediterranean  Fleet  was  assumed  to  be  at 
sea  according  to  radio  monitoring.   In  the  afternoon,  a  British 
radio  message  was  intercepted,  giving  indication  of  contact  with 
the  enemy  (possibly  the  sinking  of  a  British  vessel  by  a  submarine 
off  Tobruk).  According  to  reports  from  agents,  the  Admiralty  was 
forced  to  order  many  traffic  diversions  because  of  considerable 
damage  by  air  attacks  on  the  Suez  Canal.  According  to  photographic 
reconnaissance,  four  cruisers,  ten  destroyers, ' eight  submarines, 
one  auxiliary  cruiser,  and  six  freighters  were  lying  at  anchor  at 
Mai ta . 


9862 

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26  Dec.    19^1  CONFIDENTIAL 

2.  Situation  Italy; 

Two  cruisers  of  4,500  tons  and  28  knots  speed,  which  were 
being  built  at  Monfalcone  for  Thailand,  have  been  requisitioned  by 
the  Italian  Navy  for  the  duration  of  the  war. 

3.  Transport  of  Supplies  to  North  Africa: 

Nothing  to  report  concerning  supply  activity  by  subma- 
rines and  destroyers.   One  naval  barge  ran  aground  while  leaving 
Taranto;   its  cargo  was  salvaged.  According  to  a  report  from  the 
Supply  and  Transport  Office,  Bardia,  naval  barge  "146"  ran  aground 
at  Solium  and  was  destroyed  by  enemy  artillery  (compare  War  Diary 
25  Dec.  concerning  naval  barge  "150  ). 

4.  Area  Naval  Group  South: 
Aegean  Sea: 

Nothing  to  report. 

Black  Sea: 

During  the  morning,  Russian  troops  landed  on  the  eastern 
and  northern  coast  of  the  Kerch  Peninsula  and  established  five 
bridgeheads  up  to  one  battalion  in  strength.  We  are  counterattack- 
ing. The  men  under  the  Port  Captain  of  Feodosiya  are  being  used 
to  defend  that  town.  Naval  radio  station  Kerch  has  been  dismantled. 

The  Naval  Staff  sent  another  communication  to  Group  South  and  the 
Commander  in  Chief,  Air  via  chain  of  command,  stressing  the  impor- 
tance of  laying  aerial  mines  at  Sevastopol  in  view  of  the  fact  that 
that  city  must  be  taken  soon  in  order  to  relieve  the  Eastern  Front. 
In  reply,  Group  South  reports  that  the  4th  Air  Force  has  already 
executed  this  mining  operation.  BM  1,000  mines  were  used,  since 
aerial  minelaying  units  were  not  available  at  that  time.  According 
to  the  Naval  Commission,  Rumania,  BM  1,000  mines  can  be  swept  with 
available  equipment  (see  Radiogram  1250). 

For  days  already,  all  commands  in  question  were  aware 
of  the  enemy's  intention  of  landing  in  the  Crimea, 
especially  near  Kerch.  Unfortunately,  no  effective 
defense  measures  on  the  part  of  the  Navy  were  possi- 
ble because  of  the  known  weakness  of  our  forces. 


IX.  Situation  East  Asia 

1.   Enemy  Situation: 

According  to  radio  monitoring,  ROYAL  SOVEREIGN  made  its 
appearance  in  the  Indian  Ocean.  The  U.S.  War  Department  reported 
strong  enemy  landings  during  the  night  of  23  Dec.  near  Antlmonan, 
100  kilometers  south  of  Manila,  as  well  as  the  probable  sinking  of 
a  Japanese  submarine  by  an  Army  bomber  off  the  California  coast. 


9862 

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« 


♦ 


26  Dec.  1941  CONFIDENTIAL 

A  British  report  from  Chungking  states  that  Dutch  East  Indian  planes 
scored  hits  on  a  Japanese  cruiser  and  probably  an  aircraft  carrier 
off  Borneo.  British  reports  further  claim  the  sinking  of  two  Japa- 
nese transports  and  a  tanker  by  naval  and  air  forces  off  the  coast 
of  Sarawak.  According  to  the  Vichy  Telegraphic  Service,  a  Dutch 
East  Indian  submarine  sank  a  Japanese  destroyer  of  the  HUBUKI  class. 
A  Netherland  East  Indian  submarine  sank  after  striking  a  mine. 

2.   Situation  Japan; 

Headquarters  report  a  Japanese  troop  landing  on  22  Dec. 
on  Wake  Island  despite  a  heavy  storm  and  high  seas  at  the  loss  of 
two  Japanese  destroyers.  According  to  reports  from  the  Naval  At- 
tache, Bangkok  dated  23  and  24  Dec,  the  Japanese  shot  down  twenty 
four  enemy  planes  and  destroyed  ten  on  the  ground  in  an  air  attack 
on  Rangoon.  After  further  reinforcements  have  been  brought  up  to 
Trengganu,  they  are  to  advance  south  along  the  coast  as  a  4th 
column.  The  central  column  is  fighting  24  kilometers  north  of  Ipoh. 
Advance  has  been  delayed  because  of  landing  difficulties,  shortage 
of  transportation,  and  destroyed  routes. 


X.   Army  Situation 

1.  Russian  Front: 

Southern  Army  Group; 

See  Aerial  Situation,  and  Situation  Black  Sea  concerning 
enemy  air  activity  and  landings  in  the  Crimea. 

Enemy  attacks  were  repulsed  on  the  sectors  of  the  1st  Panzer  Army, 
the  17th  Army,  and  the  16th  Army. 

Central  Army  Group; 

The  XLVIII  Army  Corps  retreated  to  rear  positions.  The 
enemy  attacked  our  line  near  the  3S  Brigade  sector.  The  XLVII 
Army  Corps  retreated  onto  the  west  bank  of  the  Oka,  on  a  general 
line  Novosil-Mtsensk.  Heavy  enemy  attacks  on  the  entire  Moscow 
front  were  repulsed,  and  enemy  penetrations  brought  under  control. 
Large  snowdrifts.  Special  snow  clearing  crews  were  put  into  opera- 
tion along  the  main  routes. 

Northern  Army  Group; 

All  enemy  attacks  were  repulsed. 

2.  Finnish  and  Norwegian  Front; 

Light  local  enemy  attacks  were  unsuccessful. 

3.  North  Africa; 

The  enemy  advanced  on  Agedabia  only  with  reconnaissance 
units.  Reinforcement  of  the  Bardia-Halfaya  front  as  well  as  move- 


9862 

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2e  lee.  I?-!  C0NFID2HTIAL 

nents  possibly  for  the  purpose  of  relieving  the  Agedabia  forces  were 
observed  by  air  reconnaissance. 


*♦*♦*♦♦********♦*#*****♦* 


-268- 


CONFIDENTIAL 

27  Dec.  1941 

Items  of  Political  Importance. 

Indo- China; 

The  Govenor's  acceptance  of  the  Japanese  ultima turn  concerning  joint 
defense  of  the  country  has  clarified  the  situation.  News  of  Japa- 
nese successes  is  received  with  a  sense  of  relief.  Anti-British 
feeling  is  growing  in  French  circles.   On  the  other  hand,  the  anti- 
Japanese  attitude  remains  unchanged.  A  diplomatic  source  reports 
that  ultimate  Japanese  victory  is  regarded  very  sceptically. 

U.S.A.: 

Manila  was  declared  an  open  city. 

Japan ; 

Hong  Kong  fell  on  25  Dec.  The  joy  at  this  success  is  enormous 
"both  as  regards  its  real  significance  as  well  as  the  moral  factor 
involved.  The  Japanese  commenced  a  big  offensive  against  Chinese 
troops  in  the  Kiangsi  and  Hunan  provinces  on  24  Dec. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

I.  The  second  departure  of  ship  "10"  was  postponed  until  the  next 
new  moon  in  January. 

II.  The  Chief,  Operations  Division,  Naval  Staff  reports  on  the  in- 
efficient manner  in  which  Group  North  is  handling  preparations  for 
the  departure  of  the  TIRPITZ.  The  orders  from  the  Naval  Staff, 
which  aimed  at  camouflage,'  intended  preparations  to  be  made  by  the 
Group  itself,  and  not  by  the  ship  command.  The  Chief,  Naval  Staff 
approves  of  intervention  by  the  Naval  Staff  as  suggested  by  the 
Chief,  Operations  Division,  Naval  Staff. 

III.  The  Chief,  Naval  Staff  orders  that  Admiral  Riccardi  be  asked 
whether  it  would  be  feasible  to  arrange  a  meeting  between  him  and 
the  Commander  in  Chief,  Navy  on  14  and  15  Jan. 

IV.  The  Chief  of  Operations  Branch  of  the  Naval  Staff,  reports  on 
the  directive  from  the  Armed  Forces  High  Command,  Operations  Staff, 
National  Defense  concerning  the  threat  to  northern  Norway  (see  War 
Diary  25  Dec). 

After  a  thorough  discussion  of  the  defense  and  safety  measures 
ordered  and  maintained  by  the  Navy,  the  conclusion  was  reached  that 
it  is  neither  necessary  nor  possible  to  increase  or  accelerate  them. 

V.  -  Concerning  the  transfer  of  the  TIRPITZ  to  Trondheim,  which  the 
Naval  Staff  is  planning  for  the  middle  of  January,  the  Naval  Staff 
has  issued  instructions  to  the  naval  commands  to  begin  all  necessary 


9862 

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27  Dec.  19^1  CONFIDENTIAL 

preparations  without  delay.   The  Navy  will  provide  four  destroyers 
and  three  torpedo  boats  to  guard  the  battleship  on  this  voyage. 
All  possible  naval  measures  have  been  taken  as  regards  torpedo  nets, 
camouflage,  and  anti-aircraft  protection  so  as  to  safeguard  the 
ship  while  lying  in  Trondheim.  Similar  preparations  are  being  made 
and  are  partially  completed  at  Narvik  where  the  vessel  is  to  go  in 
case  of  necessity.  The  TIRPITZ  will  operate  out  of  Trondheim  under 
Group  North  according  to  the  instructions  issued  by  the  Chief,  Naval 
Staff. 

The  Naval  Staff  asks  the  Commander  in  Chief,  Air,  Operations  Staff 
to  issue  instructions  to  the  3rd  and  5th  Air  Force  to  comply  with 
the  requests  hereafter  made  of  them  by  Group  North  concerning  all 
measures  necessary  for  reconnaissance,  escort,  and  fighter  plane 
cover.  They  should  also  make  bombers  available  If  necessary. 


Situation  27  Dec.  19^1 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

North  Atlantic: 

DIDO  arrived  at  Gibraltar  from  Bermuda.  According  to  in- 
formation from  captains  of  merchant  vessels,  merchant  ships  are  to 
receive  two  additional  guns  and  anti-aircraft  guns  in  Bermuda.  The 
majority  of  the  ships  leaving  the  La  Plata  River  are  to  be  assembled 
into  convoys  off  the  Bermudas.  Freetown  is  regarded  as  an  area  en- 
dangered by  submarines.  The  approaches  to  the  harbor  of  Portsmouth, 
New  Hampshire  have  been  mined. 

South  Atlantic: 

A  10.5  cm.  howitzer  battery  is  being  installed  on  Fernando 
Noronha.  On  26  Dec.  the  ASTURIAS  was  on  patrol  east  of  Bahia. 

Pacific  Ocean: 

The  entrances  to  San  Francisco  Bay  have  been  mined. 

2.  Own  Situation: 
Nothing  to  report. 


II.  Situation  West  Area 
1.   Enemy  Situation: 
Nothing  to  report. 


9862 

-270- 


27  Dec.  19^1  CONFIDENTIAL 

2.   Own  Situation: 


ships . 


Atlantic  Coast; 

Enemy  air  raids  on  Brest  from  1922  to  2048.  No  damage  to 


According  to  a  report  from  the  Naval  Attache,  Madrid  it  is  possible 
to  salvage  the  BENNO  if  the  good  weather  continues.   The  Spaniards 
will  pretend  to  confiscate  the  ship  as  having  been  abandoned  and  put 
it  under  naval  flag.  It  will  be  repaired  at  Ferrol.  It  will  be  re- 
turned to  Germany  after  it  has  been  repaired  (see  Radiogram  2400 ). 

Channel  Coast; 

Nothing  to  report. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation; 

According  to  radio  monitoring,  British  steamer  CORMEAD 
(2,848  BRT)  hit  a  miue  off  Cromer  during  the  night  of  25  Dec.  The 
following  ships  were  located  in  home  waters:  KING  GEORGE  V,  DUKE 
OF  YORK,  HOWE,  RESOLUTION,  RODNEY,  VICTORIOUS,  ILLUSTRIOUS,  and 
FORMIDABLE.  No  information  is  available  on  the  commissioning  of 
the  ANSON  for  active  duty.  RENOWN  and  NELSON  are  being  repaired  in 
the  Iceland  area. 

Own  Situation; 

One  enemy  plane  was  shot  down  by  Navy  anti-aircraft  near 
Texel.  Otherwise  nothing  to  report. 

2.  Norway ; 

Supplementing  his  report  of  26  Dec,  the  Commanding  Ad- 
miral, Norway  reports  that  the  enemy  unit  stayed  in  Vest  Fjord  from 
1100  to  1630.  After  a  short  exchange  of  gunfire,  the  patrol  boat 
GEIER.  was  boarded  and  taken  in  tow  by  a  destroyer.  So  far  it  is 
not  known  what  became  of  our  own  Coast  Guard  personnel  after  the 
enemy  landed  near  Glaapen.  .  Telephone  communication  with  the  south- 
ern Lofoten  Islands  has  been  disrupted.  A  small  unidentified  mer- 
chant steamer  was  set  on  fire.  Norwegian  steamer  KONG  HARALD  and 
steamer  NORDLAND  are  missing. 

It  is  not  known  whether  a  torpedo  or  a  mine  is  responsible  for  the 
sinking  of  steamer  KONG  RING  off  Groetsund. 

On  27  Dec.  enemy  operations  were  directed  against  the  Vest  Fjord 
and  the  Nord  Fjord.  Reports  about  this  began  coming  in  at  Naval 
Staff  at  1300,  indicating  that  a  southern  group  consisting  of  one 


9862 

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27  1-C  1941  CONFIDENTIAL 

heavy  cruiser,  tvo  light  cruisers,  and  five  to  seven  destroyers 
was  operating  against  the  Nord  Fjord,  while  a  northern  group  con- 
sisting of  two  light  cruisers,  four  to  seven  destroyers,  and  pos- 
sibly five  transports  was  operating  against  the  Vest  Fjord.  More 
particularly,  the  reports  from  the  Commanding  Admiral,  Norway  pre- 
sent the  following  picture: 

In  the  Nord  Fjord  enemy  landings  took  place  between  1000  and 
1100  on  Suedue,  the  western  coast  of  Vaagsoe  Island,  and  on 
Husevaagsoe.  After  a  barrage  had  been  laid  by  destroyers  which 
stayed  out  of  range  of  the  coastal  batteries,  armored  PT  boats  pen- 
etrated into  Maaloe  Harbor  and  landed  troops  in  spite  of  defensive 
fire.   Infantry  fighting  with  heavy  casualties  on  both  sides  ensued 
in  Maaloe.  Strong  enemy  aerial  activity.  The  enemy  left  Maaloe  at 
1552.  Coastal  batteries  apparently  had  no  chance  to  intervene. 
Kulen  battery  was  put  out  of  action  by  a  bomb  hit.  At  1540  Halsoe 
battery  reported  that  two  light  cruisers  and  five  destroyers  on  a 
northerly  course  were  shelling  targets  on  the  shore.  No  communica- 
tion with  Nord  Fjord  battery.  Enemy  minelaying  operations  off  Nord 
Fjord  are  not  out  of  the  question.  Since  the  enemy  left  Maaloe, 
the  Army  does  not  believe  that  any  enemy  troops  remain  on  Vaagsoe 
and  Husevaagsoe.   It  is  planned  to  search  these  islands  thoroughly 
on  28  Dec. 

Harbor  installations  at  Maaloe  have  been  destroyed  by  fire.  The  fol- 
lowing ships  were  sunk  in  the  harbor  by  destroyers  which  penetrated 
into  it:   Patrol  boat  F0EHN,  steamer  EISMEER  (1,000  BRT),  steamer 
NORMA  {2,300  BRT),  steamer  REIMAR  FRITZEN  (2,900  BRT).   The  fate  of 
three  other  steamers  is  unknown.  Patrol  boat  D0NNER  is  drifting  to 
sea  on  fire.  Salvage  attempts  are  in  process.  The  retreating  ene- 
my group  was  last  sighted  at  1900  from  Stadtland.  See  Radiogram 
2^40  for  the  report  by  Admiral,  West  Norwegian  Coast  concerning 
events  on  Maaloe. 

In  the  Vest  Fjord  the  British  troops  began  landings  at  1200  on  Vest 
Vaagoe  at  Valberg  and  Balstad,  on  Flakstadoe  at  Flakstad,  and  on 
Moskenesoe  near  Moskenes.  According  to  Army  report,  the  enemy  left 
Vest  Vaagoe  during  the  evening  after  communications  had  been  destroy- 
ed. No  other  reports  are  available  but  the  Commanding  Admiral,  Nor- 
way is  of  the  opinion  that  occupation  of  other  islands  is  unlikely. 

German  countermeasures  instituted  by  the  Commanding  Admiral,  Norway 
involved  four  submarines  lying  in  the  Nord  Fjord  area  under  the  Com- 
manding Admiral,  Submarines  and  the  transfer  of  the  8th  PT  Flotilla 
from  Tromsoe  to  Narvik,  from  where  operations  are  intended  by  the 
Admiral,  Arctic  Ocean,  depending  on  the  situation  on  28  Dec.  On 
the  other  hand,  the  Commanding  Admiral,  Norway  had  intended  not  to 
transfer  the  8th  Destroyer  Flotilla  to  Narvik  because  of  the  uncer- 
tain enemy  situation,  the  inadequate  training  of  the  flotilla,  and 
navigational  difficulties.  Before  these  intentions  were  known  to 
the  Admiral,  Arctic  Ocean,  however,  he  had  sent  both  these  flotillas 
on  operations;  the  8th  PT  Flotilla  to  advance  on  Vest  Vaagoe, 
Flakstadoe,  Moskenesoe  and  return  to  Narvik,  and  the  8th  Destroyer 
Flotilla  to  reconnoiter  the  landing  places  (see  Radiogram  2400). 

An  assault  troop  company,  an  anti-aircraft  unit  from  Bergen,  as 
well  as  100  men  from  Army  coastal  artillery  were  dispatched  as 


9862 

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27  Dec.   19*U 


CONFIDENTIAL 


# 


reinforcements  for  the  coastal  patrol  units  in  Floeroe  and  Maaloe. 

The  Commander,  Naval  Air,  North  Sea  and  the  Fighter  Command,  Norway 
put  to  use  all  available  forces  to  fight  the  enemy.  Reports  state 
that  one  destroyer  was  sunk  off  Vaagsoe  and  that  one  cruiser  and  one 
destroyer  were  damaged.   Our  aircraft  lookouts  on  Maaloe  were  seizeo 
by  enemy  parachute  troops.  At  1515  a  German  Bomber  Group  started 
out  from  Breda,  Holland  for  Stavanger  without  regard  for  existing 
regulations.  According  to  a  report  from  the  5th  Air  Force,  eleven 
enemy  bombers  had  been  shot  down  by  1600.  Enemy  planes  attacked  the 
Herdla  airport  where  the  runway  was  damaged,  and  a  convoy  off  Eger- 
sund,  damaging  the  steamer  MAGDALENE  VINNEN. 

The  Commanding  Admiral,  Norway  as  well  as  Group  North  analyze  the 
situation  as  follows:  The  foregoing  events  do  not  point  to  a  large- 
scale  operation.  They  are,  rather,  a  series  of  larger  raids  di- 
rected against  the  focal  points  of  our  trade  routes  off  Narvik  and 
near  Bergen.  It  is  their  aim  to  destroy  our  outposts  and  batteries, 
hamper  and  temporarily  disrupt  our  trade.  These  raids  are  staged 
for  propaganda  and  prestige  reasons,  as  well  as  for  the  purpose  of 
reconnoitering  the  terrain,  the  state  of  the  defenses,  and  of  alert- 
ness, with  view  to  a  subsequent  establishment  of  bridgeheads  from 
which  to  disrupt  and  cut  the  supply  routes. 

The  Naval  Staff  agrees  with  this  analysis. 


♦ 


IV. 


Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea; 


During  the  evening,  enemy  air  activity  in  the  Kiel  Bay  area.  The" 
navigational  channels  in  the  Belts  are  temporarily  closed  because 
mines  are  suspected. ' 

According  to  a  directive  from  the  Armed  Forces  High  Command,  after 
the  225th  Infantry  Division  has  been  shipped,  it  is  planned  to 
transfer  the  SS  Legion,  Netherlands  to  Riga  by  sea.  Group  North 
is  being  informed. 


V.   Submarine  Warfare 

1.  Enemy  Situation: 

Cruisers  TRINIDAD  and  CLEOPATRA  were  in  the  Scapa  Flow 
area  on  22  Dec,  and  convoy  CS  60  was  southwest  of  Iceland  on  26 
Dec.  Twenty  seven  survivors  from  the  former  Norwegian  steamer 
NIDARDDADAL  (2,368  BRT)  from  the  eastbound  convoy  SD  were  landed 
in  Iceland  on  18  Dec.  Dutch  submarine  0  "10"  and  an  unidentified 
vessel  were  6  miles  north  of  Trevose  Head  on  26  Dec,  probably 
bound  for  Milford. 

2 .  Own  Situation : 

In  the  eastern  Mediterranean,  German  submarines  located 


-273- 


9862 


27  Dec.  19^1  CONFIDENTIAL 

an  enemy  convoy  of  five  vessels.   One  submarine  reports  a  miss  on  a 
destroyer.  See  War  Diary,  Part  B,  Vol.  IV  for  further  situation  re- 
port;  for  the  assignment  of  attack  areas  to  seven  of  the  boats  op- 
erating near  the  Azores;  and  for  permission  of  the  Naval  Staff  to 
extend  the.  operations  area  between  32°  N  and  42°  N  as  far  as  35°  W 
for  the  duration  of  this  operation.  For  teletype  to  that  effect  as 
per  l/Skl  I  op  2206/41  Gkdos.  Chefs,  see  War  Diary,  Part  C,  Vol.  IV. 
This  also  contains  a  review  of  submarine  operations  on  27  Dec.  ac- 
cording to  which  ninety  eight  operational  submarines  are  distributed 
as  follows: 

1.  In  the  operations  area,  or  en  route  there: 

a.  For  assignment  "American  Coast"  3 

b.  For  assignment  "Arctic  Ocean"  3 

c.  For  assignment  "West  Coast  of  Norway"      5 
(includes  three  en  route) 

d.  For  assignment  "Mediterranean"  including 
submarines  west  of  Gibraltar  "  20 

e.  For  special  assignment  in  Atlantic         1 
(radio  deception) 

2.  On  return  voyage: 

a.  From  the  South  Atlantic  2 

b.  In  the  Mediterranean  3 

c.  From  operations  area  west  of 

Gibraltar  1 

Total £8 

The  remaining  sixty  operational  submarines  are  not  ready  for  action: 

a.  In  harbors  of  western  France  38 

b.  In  Kiel  13 

c.  In  Trondheim  1 

d.  In  Mediterranean  harbors  8 

Total 60 

A  copy  of  this  list  is  in  War  Diary,  Part  B,  Vol.  IV. 


VI.  Aerial  Warfare 

1.   British  Isles  and  Vicinity: 

For  reconnaissance  results  and  operations  in  the  Norway 
area,  see  Situation  Norway. 

During  the  night  of  27  Dec.  nineteen  planes  were  sent  to  lay  mines 
in  the  Thames,  and  seven  to  attack  shipping  targets*  So  far,  one 
steamer  (5,000  BRT)  was  reported  sunk. 

For  enemy  activity  during  the  day  over  Norway,  see  Situation  Norway, 
over  Brest,  see  Situation  West  Area.  In  the  western  part  of  the 


9862 

-274- 


27  Dec.  19*U  CONFIDENTIAL 

Reich,  enemy  aerial  activity  vith  seventy  to  eighty  planes;   in  the 
Kiel-Husum  sector  ten  planes.  Up  to  now,  ten  planes  have  been  re- 
ported shot  down,  seven  of  them  by  night  fighters. 

2.   Mediterranean  Area: 

Aerial  mines  were  laid  in  Tobruk  harbor,  and  Gazala  air- 
port was  attacked.  Eleven- Ju  88' s  took  part  in  each  operation. 
For  results  of  air  reconnaissance  see  Enemy  Situation,  Mediterranean, 

J>.       Eastern  Front; 

The  Air  Force  reports  that  it  sank  a  total  of  four  trans- 
ports, eleven  assault  craft,  and  several  fishing  vessels  and  damaged 
three  transports  while  repulsing  enemy  landings  near  Kerch. 


VII.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation: 

According  to  Italian  reports  and  German  air  reconnaissance, 
a  force  consisting  of  one  battleship,  three  cruisers,  and  several 
destroyers  was  at  sea  northeast  of  Tobruk  during  the  morning.  An 
Italian  report  states  that  one  heavy  cruiser  and  two  patrol  vessels 
arrived  at  Malta  from  Gibraltar.  On  26  Dec.  one  cruiser  and  four 
destroyers  went  through  the  Suez  Canal  to  Port  Said  en  route  from 
Aden  to  Alexandria.  Seven  damaged  vessels  are  said  to  be  lying  in 
Alexandria. 

According  to  a  further  Italian  report,  cruiser  NEPTUNE  and  one  de- 
stroyer sank  off  Tripoli  at  0315  on  19  Dec.  after  striking  mines. 
(Compare  War  Diary  25  Dec.) 

2.  Situation  Italy: 

The  Admiral,  German  Naval  Command,  Italy  questions  the  ad- 
visibility  of  decorating  leading  personalities  of  the  Italian  Navy 
with  the  Iron  Cross  for  other  reasons  than  purely  military  success. 
He  is  therefore  against  the  ceremony  which  is  to  take  place  at 
Garmisch.  In  view  of  the  as  yet  unpredictable  developments  in  North 
Africa  he  believes  that  any  steps  should  be  avoided  which  might  be 
interpreted  as  basically  approving  Italian  operations  and  achieve- 
ments generally  (see  Radiogram  2130). 

The  Armed  Forces  High  Command  transmits  the  following  teletype  sent 
by  the  Commanding  General,  South  to  the  Armed  Forces  High  Command: 
"Of  the  two  difficult  transport  problems,  the  question  of  oil  for 
the  Italian  Fleet  is  the  more  important  one,  since  at  this  time  the 
successful  shipment  of  supplies  depends  on  whether  or  not  it  is  pos- 
sible to  have  adequate  escort  protection.  Because  of  the  oil  short- 
age it  is  impossible  to  send  out  the  two  convoys  needed  per  month. 
As  long  as  Malta  carries  on,  we  must  make  available  the  necessary 
oil  if  we  hope  to  survive.  The  battle  for  Malta  depends  on  bring- 
ing up  additional  forces.  In  my  opinion,  this  matter  should  be  dis- 


_275-  9862 


27  Dec.  19^1  CONFIDENTIAL 

cussed  with  one  of  your  representatives.  For  a  limited  time,  it 
seems  to  me,  the  Mediterranean  will  be  the  most  important  theater." 
He  requests  the  Naval  Staff's  opinion:  1.  Concerning  the  state  of 
fuel  oil  deliveries  and  developments  in  January;   2.   concerning 
the  possibilities  of  procuring  and  delivering  the  additional  fuel 
oil  necessary  for  operating  the  two  convoys  per  month.  He  also 
makes  some  suggestions  which  might  possibly  relieve  the  situation 
(see  Radiogram  2100). 

3.  Transport  of  Supplies  to  North  Africa: 

British  artillery  shelled  Bardia  harbor  on  26  Dec.  start- 
ing at  2220.  Two  auxiliary  sailing  vessels  left  Piraeus  on  26  Dec. 
bound  for  Bardia.  Three  transport  submarines  are  en  route  to  Bar- 
dia. Two  destroyers  which  were  supposed  to  leave  for  Tripoli  on 
27  Dec.  have  postponed  their  departure  twenty  four  hours  because  of 
the  weather. 

4.  Area  Naval  Group  South: 
Nothing  to  report. 


VIII.  Situation  East  Asia 

1.  Enemy  Situation: 

According  to  radio  monitoring,  it  appears  that  a  3rd  Bat- 
tleship Division  will  be  formed  in  the  East  Indies  consisting  of 
flagship  RAMILLIES,  REVENGE,  and  ROYAL  SOVEREIGN. 

News  Series  "Foreign  Navies",  News  Analysis  No.  48  contains  a  re- 
port by  the  Naval  Staff,  Naval  Intelligence  Division  on  the  U.S. 
coastal  defenses  in  the  Philippines. 

2.  Situation  Japan: 
Nothing  to  report. 


IX.  Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

Additional  enemy  landings  on  Kerch  Peninsula.  Air  recon- 
naissance established  that  more  forces  are  being  brought  up  to  the 
peninsula.  Enemy  attacks  were  repulsed  on  the  sectors  of  the  1st 
Panzer  Army,  and  the  17th  and  6th  Army. 

Central  Army  Group: 

At  the  2nd  Army  sector,  the  enemy  began  very  heavy  at- 
tacks on  both  wings,  and  broke  through  the  position  of  the  SS  Bri- 


9862 

-276- 


27  Dec.  1941  CONFIDENTIAL 

gade  at  the  bend  of  the  Trudy  River.  Break-through  towards  Orel 
and  Malo  Arkhangelsk  Is  to  be  expected.  Evasive  maneuvers  of  the 
XXXV  Array  Corps  into  its  winter  positions  were  executed  according 
to  plan.  Heavy  enemy  attacks  on  the  2nd  Panzer  Army.  In  the  4th 
Army  sector,  Andreyevskoye  had  to  be  vacated  because  of  ammunition 
shortage.  Attacks  against  parts  of  the  4th  and  9th  Army  were  re- 
pulsed. The  supply  situation  has  become  critical  because  of  snow 
s  torms . 

Northern  Army  Group; 

Besides  heavy  artillery  activity,  only  light  enemy  at- 
tack movements. 

2.  Finnish  and  Norwegian  Front; 

Enemy  attacks  were  repulsed  in  Karelia  on  the  Svir  sec- 
tor and  at  the  XXXVI  Army  Corps  and  Mountain  Corps,  Norway. 

3.  North  Africa; 

An  enemy  attack  of  battalion  strength  against  the  Agedabia 
front  was  repulsed.  The  15th  Panzer  Division  threw  back  strong 
units  of  the  22nd  Armored  Brigade  40  kilometers  southeast  of 
Agedabia.  Supolies  for  the  Bard ia- Hal faya  front  are  now  assured 
until  10  Jan.  1942. 


*****#******************* 


9862 

-277- 


COBFIDEHTIAL 

28  Dee.   19*1 

Items  of  Political  Importance 

Great  Britain  and  U.S.A. : 

In  certain  remarks  made  by  Churchill  In  his  address  before  the  U.S. 
Congress,  the  Dally  Hall  detects  Indications  that  he  believes  a 
Union  of  the  United  States  and  the  British  Empire  should  be  oreated 
after  the  war.  According  to  the  United  Press,  Churchill  Is  ex- 
pected to  go  to  Canada,  vhere  he  vlll  address  the  Upper  and  the 
Lover  Houses  of  the  Canadian  Parliament.  Parliamentary  circles  In 
London  expect  that  Roosevelt  vlll  visit  Great  Britain  at  a  later 
date.  Roosevelt  has  Informed  Lltvlnov  about  the  points  discussed 
during  the  conferences  In  Washington.  According  to  the  Associated 
Press,  a  conference  of  the  ambassadors  and  ministers  of  the  Latin 
American  countries  has  begun  at  the  White  House  In  the  presence  of 
Roosevelt  and  Churchill. 

According  to  the  Vichy  Telegraphic  Service,  Secretary  of  State  Hull 
has  Initiated  joint  action  by  the  U.S.,  Canada,  and  Britain  to 
force  the  De  Gaulllsts  to  relinquish  the  Islands  of  St.  Pierre  and 
Nlquelon.  According  to  French  reports  the  U.S.  military  mission 
In  Cairo  has  taken  over  oontrol  of  the  Egyptian  docks  and  shipyards 
la  Alexandria  and  Sues.  Control  of  the  harbors  and  their  Installa- 
tions Is  also  to  be  taken  over  by  the  American  authorities.  This 
report  needs  to  be  Investigated. 

Italy; 

According  to  Europapress,  talks  concerning  the  removal  of  Italian 
civilians  from  Abyssinia  have  been  concluded.  Four  Italian  steam- 
ers are  scheduled  to  take  avay  all  Italians  not  subject  to  military 
service. 

China; 

The  Chinese  Hatlonal  Government  at  Banking  Is  preparing  to  annex 
Hong  Kong. 


Situation  28  Dec.  19*1 

I.   War  In  Foreign  Waters 

1.   Enemy  Situation; 

forth  Atlantic; 

Radio  decoding  located  HIOERIA  In  Scapa  Flov  on  27  Dec, 
CHAR'XBDIS  near  Glasgov  on  25  Dec,  and  CUMBERLAND  and  BERWICK  near 
Iceland  on  26  and  27  Dec 

The  U.S.  Havy  announces  that  the  British  method  of  examining  mer- 
chantmen vi"!"1  henceforth  also  be  used  by  U.S.  *jrmy  and  lavy  planes. 


9862 

-278- 


28  Dec.  1941  CONFIDENTIAL 

2.   Own  Situation: 

'  The  entire  crew  of  ship  "16"  has  arrived  at  ports  In  west- 
ern France.  Part  of  the  crew  of  the  PITHON  is  still  en  route  a- 
board  an  Italian  submarine. 

On  the  basis  of  the  experiences  of  ship  "16",  ship  n10n  again  re- 
quests that  the  question  of  submarine  escort  be  reviewed  (see  Radio- 
gram 17*0). 

Minesweeper  SPREEWALD  receives  orders  by  Radiogram  1017  not  to  touch 
point  "Specht"  and  to  make  her  crow's  nest  as  small  as  possible. 


II.  Situation  West  Area 

1.   Atlantic  Coast; 

At  1240  a  Bristol  Blenheim  made  a  low  level  attack  on 
Brest.  At  1320  one  enemy  plane  attacked  two  patrol  vessels  off 
Brest.  Slight  casualties  and  damage.  The  attacker  was  presumably 
shot  down. 


2.   Channel  Coast: 

0 s tend, 


During  the  morning  and  afternoon  enemy  air  activity  near 
Dunkirk,  and  Boulogne. 


III.  Horth  Sea.  Norway,  Arctic  Ocean 

1.   Horth  Sea: 

Enemy  Situation: 

At  1600  a  German  reconnaissance  plane  reported  two  cruisers 
and  five  destroyers  under  pursuit  plane  cover  off  the  Maas  estuary. 
At  the  same  time  another  plane  reported  seven  destroyers  40  miles 
vest  of  Hook  of  Holland.  Planes  of  the  Fighter  Command,  Holland  sub- 
sequently dispatched  by  the  3rd  Air  Force  report  that  they  did  not 
sight  any  enemy  forces.  Radio  monitoring  Intercepted  British  re- 
ports concerning  German  merchantmen  both  west  of  Den  Holder  and  from 
7  to  10  miles  off  Dunge  Ness. 

Own  Situation: 

From  1913  to  2244  enemy  air  raids,  concentrating  on  Vil- 
helmshaven  and  Emden.  In  Emden  several  large  fires  resulted.  The 
only  radar  gear  repeatedly  ceased  functioning.  Damage  and  casualties 
cannot  yet  be  determined.  In  Vilhelmshaven  several  large  fires  were 
started  in  the  city  and  the  shipyard.  Damage  to  shipyard  presumably 
slight.  Four  enemy  planes  were  shot  down. 


9842 
-279" 


28  Dec.  19*1  CONFIDENTIAL 

Nothing  to  report  on  the  convoy  escort  service. 

2.   Norway: 

Enemy  Situation: 

The  islands  of  Vaagsoe  in  the  Nord  Fjord  and  Vest  Vaagoe 
in  the  Vest  Fjord  which  were  occupied  on  27  Dec.  were  evacuated  in 
the  late  afternoon  of  the  same  day.  According  to  air  reoonnaissanoe 
three  cruisers,  seven  destroyers,  three  submarines,  and  two  merchant- 
Ben  were  anchored  off  Moskenes  (Vest  Fjord)  between  1300  and  1500. 
Four  destroyers  vhioh  launched  boats  were  located  west  of  the  entrance 
to  the  Ofoten  Fjord. 

In  the  southeastern  part  of  the  Kvaenangen  Fjord  a  submerging  subma- 
rine was  reported.  According  to  radio  monitoring  three  British  ves- 
sels were  located  in  the  Murmansk  area.  Another  land -based  broad- 
casting station  besides  the  ones  at  Archangel  and  Murmansk  was  loca- 
ted. 

Own  Situation; 

A  belated  report  from  Maaloe  of  27  Deo.  states  that  the 
patrol  vessels  DONNER  and  FOEHN  sank  while  fighting  until  all  ammu- 
nition was  used  up.  The  DONNER  had  opened  fire.  The  number  of 
casualties  is  still  unknown.  From  the  land  fighting  at  Maaloe  four- 
teen dead  and  twenty  five  missing,  among  them  seven  dead  and  nine 
missing  from  the  Navy.  One  gun  of  the  Nord  Fjord  battery  was  put 
out  of  commission  by  gunfire  from  a  cruiser.  One  dead  and  seven 
wounded.  Apparently  no  survivors  at  the  Kulen  Army  coastal  battery. 
Four  more  enemy  planes  were  presumably  shot  down  by  the  Nord  Fjord 
battery  and  by  the  patrol  vessel  FOEHN.  Naval  Signal  Station  Maaloe 
is  completely  destroyed.  No  survivors.  The  whereabouts  of  secret 
documents  is  unknown.  Further  steamers  lost:  Probably  ANITA  L.N. 
RUSS  (1,712  BRT),  certainly  ANHALT  (5,870  BRT).  Tug  boat  RECHTENFLETH 
was  sunk. 

The  combat  mission  by  air  forces  to  be  undertaken  on  28  Dec.  in  view 
of  the  enemy  situation  was  not  possible  due  to  weather  conditions. 
Two  destroyers  of  the  8th  Destroyer  Flotilla  arrived  at  1900  and 
three  vessels  of  the  8th  PT  Boat  Flotilla  arrived  at  1600  in  Narvik 
in  order  to  refuel,  and  departed  again  during  the  evening.  At  15*5 
the  Admiral,  Arctic  Ocean  received  a  direotive  from  the  Commanding 
Admiral,  Norway  to  put  PT  boats  and  destroyers  into  action  against 
the  enemy  vessels  which  had  been  sighted  off  Moskenes.  At  1602 
Group  North  recommended  use  of  strong  plane  and  PT  boat  units  in 
order  to  prevent  the  British  from  gaining  a  foothold,  if  the  reports 
from  the  5th  Air  Force  are  true.  Group  North  also  recommended  that 
submarine  U  "582"  be  sent  from  Trondheim  to  the  Vest  Fjord  after 
completion  of  repairs.  The  other  three  submarines  operating  in  the 
Vest  Fjord,  U  "87",  U  "135"  and  U  "156",  were  released  for  their 
original  assignments  by  the  Commanding  Admiral,  Submarines.  The 
recommendation  from  the  Commanding  Admiral,  Norway  to  let  submarine 
U  "585",  whloh  will  be  ready  at  Trondheim  on  29  Dec,  operate  in  the 
Vest  Fjord  together  with  other  available  submarines  could  not  be 
endorsed  by  Group  North.  The  Commanding  Admiral,  Submarines  does 
not  believe  the  XT  "585"  will  be  ready  for  action  before  completion 


-260-  m2 


28  Dec.  19^1  CONFIDENTIAL 

of  repairs,  and  other  submarines  besides  the  ones  detailed  for  op- 
erations in  northern  Norway  are  unfortunately  not  available  (see 
Radiograms  2225  and  2355)* 

Upon  an  inquiry  from  the  Naval  Staff  as  to  why  the  Commanding  Ad- 
miral, Norway  gave  lack  of  sufficient  training  as  one  of  the  reasons 
for  not  using  the  8th  Destroyer  Flotilla  on  27  Dec,  the  Commanding 
Admiral,  Norway  reports  that  the  Admiral,  Arctic  Ocean  explained  the 
return  route  taken  by  the  flotilla  (going  around  Kola  Bay),  which  had 
been  criticized  by  the  Commanding  Admiral,  Norway  on  19  Dec,  by  the 
fact  that  the  personnel  has  not  yet  completed  its  training.  The  Com- 
manding Admiral,  Norway  subsequently  gave  his  consent  to  the  opera- 
tion of  the  flotilla  on  27  Dec  (see  Radiogram  1805). 

Concerning  the  operations  of  the  two  flotillas  on  28  Dec  the  Ad- 
miral, Arctic  Ocean  reports  via  the  Commanding  Admiral,  Norway  at 
2300  as  follows: 

1.  The  foray  of  the  8th  Destroyer  Flotilla  from  the  Vest  Fjord 
up  to  Relne  has  been  executed.  No  enemy  forces  were  sighted.  Pene- 
tration into  Eirke  Fjord  or  a  bombardment  raid  from  the  outside  a- 
gainst  the  enemy  vessels  anchored  there  was  not  possible  because  of 
poor  visibility  and  navigational  difficulties. 

2.  Instead  of  operating  against  Relne,  the  8th  PT  Boat  Flotilla 
was  ordered  to  attack  the  four  enemy  destroyers  reported  off  Of o ten 
Fjord. 

3.  The  8th  Destroyer  Flotilla  was  not  put  into  action  against 
these  same  enemy  forces  since  it  would  be  dangerous  for  these  two 
forces  to  operate  simultaneously  in  this  narrow  area.  The  destroy- 
ers are  refuelling  at  "Pelagos"  in  Narvik  at  the  moment. 

4.  Further  plans: 

a.  On  29  Dec  rest  for  the  8th  PT  Boat  Flotilla  after 
cruising  three  nights  in  succession. 

b.  Destroyers  are  to  lay  mines  of f  Kirke  Fjord  unless 
the  enemy  situation  forces  us  to  change  our  plans.  Nines  are  en 
route  from  Tromsoe  to  Narvik  aboard  the  COBRA  (see  Radiogram  2335)* 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.   Enemy  Situation: 

According  to  a  report  from  the  Foreign  Office,  ten  of  the 
thirteen  Norwegian  ships  temporarily  Interned  at  Goeteborg  have  now 
been  declared  indefinitely  interned.  The  other  three  ships  have 
been  released  since,  besides  other  reasons,  the  captains  have  been 
won  for  the  German  cause  (?).  Necessary  steps  concerning  the  intern- 
ment of  the  newly  built  ships  have  been  instituted  by  the  Foreign 
Office. 


-281-  9862 


28  Dec.  19*1  CONFIDENTIAL 

See  War  Diary  Files  "Barbarossa"  (l/Skl  57221  geh.)  for  further 
statements  from  prisoners  of  var  concerning  the  preparedness  of 
the  Baltic  Sea  Fleet  (four  more  destroyers  and  two  torpedo  boats); 
the  commissioning  (in  spring  19^2)  of  four  remote-controlled  PT 
boats,  tvo  of  which  supposedly  were  blown  up  near  Oesel  and  tvo 
are  ready  for  action;  the  demolition  of  remote-controlled  planes; 
and  the  reinforcement  of  the  Leningrad  front  by  30,000  men  from 
naval  vessels,  Hangoe,  and  troops  from  various  islands. 

2.   Ovn  Situation: 

Mines  vere  again  laid  in  the  Eronstadt  Bay  channel.  The 
Naval  Liaison  Staff,  Finland  reports  that  ice  conditions  have  grown 
considerably  vorse,  and  that  it  is  impossible  to  escort  the  convoy 
from  Oroe  to  Helsinki  by  minesweepers  with  minesveeping  gear. 
There  is  danger  that  the  icebreaker  vill  freeze  in  and  be  paralyzed 
in  Reval.   Since  troop  transports  are  not  permitted  to  travel  in 
the  Gulf  of  Finland  unescorted,  Group  North  proposes  the  following: 

"a.  All  troop  transports  bound  for  Finland  vill  be  di- 
verted to  Aboe.   Important  troop  transports  can  be  sent  to  Helsinki 
by  smaller  steamers  along  the  inter-island  route  if  Finland  can 
keep  that  route  open. 

"b.  All  troop  transports  for  the  Northern  Army  Group 
vill  be  diverted  to  Riga  and  Libau,  the  icebreaker  intended  for 
Reval  vill  therefore  be  sent  to  either  Libau  or  Riga. 

"c.   Should  the  weather  improve,  an  attempt  might  be  made 
to  let  the  troops  be  transported  by  small  steamers  by  the  inter- 
island  route  to  Helsinki  and  from  there  to  Reval  under  escort  with- 
out minesveeping  gear.   This  vill  presuppose  that  there  is  not  much 
ice  in  Reval  liarbor."   (See  Radiogram  1557.) 


V.   Submarine  Warfare 

1.  Enemy  Situation! 

At  1400  a  British  vessel  reported  a  large  vessel  in  the 
Iceland  area,  probably  southwest.  At  0900  another  vessel  vas  lo- 
cated at  59°  I,  37°  10'  V.  Convoy  HX  165  either  vas  approaching 
or  vas  in  the  Minches.  At  2200  a  British  plane  received  orders 
from  Gibraltar  to  break  off  the  previously  ordered  patrol  and  to 
reconnoiter  an  area  150  miles  southwest  of  Brest,  to  report  enemy 
movements,  and  to  maintain  contact  with  the  battle  cruiser.  De- 
tails could  not  be  determined.  Perhaps  it  vas  a  training  message 
or  one  meant  to  mislead  us. 

2.  Ovn  Situation; 

Report  in  War  Diary,  Part  B,  Vol.  IV. 

The  Commanding  Admiral,  Submarines  informs  Group  North  that  he  con- 
siders spontaneous  submarine  operations  in  defense  against  enemy 


9362 

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« 


28  Dec.  19*1  CONFIDENTIAL 

raids  in  Norway  impractical  for  the  following  reasons: 

a.  The  submarines  will  only  in  rare  cases  be  able  to 
reach  the  areas  concerned  in  time. 

b.  Their  chances  for  attack  in  the  area  are  very  slight 
because  of  the  rapidly  moving  targets. 

c.  Such  operations  would  increase  fuel  consumption,  and 
this  would  limit  the  operations  planned  for  these  submarines  in  the 
American  area  in  the  Atlantic. 

d.  These  operations  would  delay  the  arrival  of  the  sub- 
marines in  the  Atlantic  where  there  have  been  no  submarines  whatso- 
ever for  weeks.  It  is  of  greatest  importance  that  this  state  of 
affairs  be  remedied  as  soon  as  possible.  Up  to  the  present  time 
this  complete  absence  of  submarines  has  prevented  us  from  exploit- 
ing, the  opportunities  in  the  untouched  American  area.   Naturally, 
it  has  also  relieved  the  British  defense  forces  in  the  Atlantic  to 
a  great  extent,  and  has  led  to  their  concentration  in  an  area  in 
which  the  greater  part  of  the  German  submarines  are  located  at 
present  or  through  which  they  must  pass.  As  a  result  we  have  had 
considerable  submarine  losses. 

e.  Therefore  the  Commanding  Admiral,  Submarines  con- 
siders that  such  operations  off  the  coast  of  Norway  constitute 
running  after  very  elusive  targets  and  a  diversion  of  submarines 
from  the  war  against  enemy  merchant  shipping  to  which  they  are  best 
suited.  Considering  the  over-all  situation,  the  war  against  mer- 
chant shipping  must  be  resumed  under  all  circumstances  as  soon  as 
possible.  The  Commanding  Admiral,  Submarines  requests  that  these 
views  be  kept  in  mind  if  he  has  to  reject  any  similar  demands  on 
Atlantic  submarines  in  the  future. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

For  reconnaissance  observations  over  the  Channel  and  Vest 
Fjord  see  Situation  North  Sea  and  Norway.  During  the  night  of  28 
Dec.  seventeen  planes  flew  minelaying  missions  over  the  Thames  and 
three  planes  flew  missions  against  ship  targets.  For  enemy  air  ac- 
tivity over  western  and  northern  Germany  see  Situation  North  Sea. 
For  damage  sustained  in  Wilhelmshaven  and  Emden  see  Situation  28 
Dec.  19*1. 

2 .  Medl ^erranean  Theater : 

Armed  reconnaissance  reported  two  direct  hits  on  an  enemy 
destroyer  and  damage  to  two  steamers. 

3.  Eastern  Front: 

Reports  about  daylight  missions  near  Kerch  have  not  yet 
been  received. 


9862 

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28  Dec.  1941  CONFIDENTIAL 

VII.  Warfare  In  the  Mediterranean 

1.  Enemy  Situation: 

According  to  aerial  photography  reconnaissance  two  cruisers, 
three  destroyers,  and  four  merchantmen  vere  in  Malta  during  the  after- 
noon. At  0950  German  air  reconnaissance  sighted  a  convoy  proceeding 
southeast  with  cruiser  and  destroyer  escort  50  miles  northeast  of  To- 
bruk.   It  vas  attacked  by  German  planes  and  a  submarine  (see  Aerial 
Warfare  and  Submarine  Warfare).  At  1020  one  cruiser  and  three  de- 
stroyers vere  located  on  a  westerly  course  20  miles  east  of  Bardia. 
These  vessels  probably  shelled  Bardia  between  1000  and  1200.   In  the 
afternoon  two  destroyers  vere  located  northwest  of  Benghazi.  During 
the  evening  a  British  vessel  reported  three  unidentified  vessels  120 
miles  northwest  of  Alexandria. 

2.  Own  Situation: 

Two  -PT  boats  left  Augusta  at  0400  to  aid  a  plane  at  sea 
which  had  sent  a  distress  signal;   they  returned  at  1045. 

3.  Situation  Italy: 
Nothing  to  report. 

4.  Transport  of  Supplies  to  North  Afrloa: 

Sailing  orders  for  destroyers  CARABINIERE  and  ASCARI  were 
cancelled.  One  transport  submarine  arrived  at  Bardia  and  departed 
again.  Three  naval  barges  en  route  to  Tripoli  entered  Lampedusa 
for  the  day. 

5.  Area  Naval  Group  South: 

Aegean  Sea: 

The  "Siena"  squadron,  consisting  of  transports,  each  with 
500  German  soldiers  aboard,  the  auxiliary  vessel  BAHLETTA,  the 
DRACHE,  and  two  torpedo  boats,  departed  from  Piraeus  to  the  south. 

Enemy  Situation: 

Air  reconnaissance  reported  fairly  heavy  ship  traffic  in 
the  vicinity  of  Sevastopol  and  many  freighters  arriving  and  leaving  - 
Sevastopol  harbor,  as  well  as  a  convoy  made  up  of  six  medium-large 
steamers  off  Novorossisk. 

Own  Situation: 

The  Italian  tanker  ALBAR0,  the  destroyer  REGINA  MARIA,  one 
torpedo  boat,  and  a  Rumanian  gun  boat  as  well  as  three  Bulgarian  PT 
boats  arrived  in  Constanta.   The  Army  situation  was  reported  con- 
solidated the  evening  of  27  Dec.  in  spite  of  a  new  landing  of  Rus- 
sian troops.   The  attack  on  Sevastopol  was  discontinued  because 
troops  were  withdrawn  to  reinforce  Kerch. 

Special  Items: 

The  development  of  the  situation  in  the  Black  Sea  and  the 


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28  Dec.  19^1  CONFIDENTIAL 

Aegean  b  a  has  confirmed  the  necessity  for  accelerating  construction 
of  naval  barges  urgently  requested  by  Group  South.  Since  the  danger 
exists  that  the  construction  program  which  is  now  drawing  to  an  end 
will  decrease  the  output  of  the  Varna  shipyard,  Group  South  consid- 
ers it  necessary  to  place  immediate  orders  for  further  construction. 
Fifty  naval  barges  each  for  the  Black  Sea  and  the  Aegean  Sea  are  the 
minimum  requirement.  For  corresponding  request  from  the  Deputy  Com- 
mander, Group  South  see  Radiogram  1350.  The  Naval  Staff,  Quarter- 
master Division  is  attending  to  the  matter. 


VIII.  Situation  East  Asia 

1.  Enemy  Situation: 

According  to  reports  from  the  U.S.,  the  fighting  on  Luzon 
near  Lingayen  and  Antimonan  is  continuing.  Two  U.S.  destroyers  were 
slightly  damaged.  According  to  Reuterthe  Japanese  landed  on  the 
island  of  Apaiang  (Gilbert  Islands)  and  have  thereby  taken  a  step 
in  the  direction  of  endangering  Australia.  The  Midway  Islands  are 
still  resisting  enemy  attacks.  According  to  further  Reuter  reports, 
General  Vavell  has  taken  over  responsibility  for  the  defense  of 
Burma.  According  to  the  French,  Singapore  reports  landing  of  Japa- 
nese parachute  troops  near  Medan  on  Sumatra.  The  Portuguese  are 
transferring  1,000  men  from  Mozambique  to  Timor. 

2.  Situation  Japan; 

According  to  a  report  from  the  Military  Attache  at  Bangkok, 
enemy  resistance  to  the  Japanese  western  column  is  Increasing  near 
Ipoh.  Enemy  air  forces  remaining  in  Malaya  are  estimated  at  130 
planes,  in  the  Philippines  at  40  planes.  Japanese  ship  artillery 
supported  landing  attempts  in  Lingayen  Gulf. 


IX.  Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

The  LIV  Army  Corps  gained  about  1.5  km.  in  its  attack  on 
the  northern  Sevastopol  front.  Enemy  resistance  in  beachheads 
north  of  Kerch  was  broken;  the  southern  beachhead  is  holding. 

At  the  1st  Panzer  Army  sector  the  XLIX  Army  Corps  continued  attacking 
with  the  western  flank  and  the  Italian  Division  in  order  to  shorten 
the  front.  The  enemy  air  force  attacked  along  the  entire  front  of 
the  II  and  XIV  Army  Corps.  On  the  17th  Army  sector  enemy  attacks 
were  repulsed  or  shattered,  in  places  with  the  help  of  all  available 
reserves.  On  the  6th  Army  sector  the  XVII  and  XXIX  Army  Corps  had 
to  withstand  strong  enemy  attacks.  Battles  around  Pochorovka  are 
still  continuing. 


_  98*' 

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28  Dec.  19*1  CONFIDENTIAL 

Central  Army  Group; 

On  the  2nd  Army  sector  there  la  still  grave  danger  of  an 
enemy  hreak- through  near  Sokolya.  The  hreak- through  gap  10  km. 
wide  In  the  hend  of  the  Trudy  River  has  not  yet  been  closed.  The 
enemy  Is  keeping  adjoining  front  sectors  under  strong  pressure  In 
order  to  prevent  them  from  withdrawing  reserves.  Evasive  movements 
west  of  Livny  are  proceeding  according  to  plan.  Much  fighting  on 
the  sectors  of  the  4th  and  9th  Armies.   It  was  possible  to  repulse 
some  attacks  with  severe  enemy  losses;   some  others  resulted  in 
critical  enemy  penetrations. 

Northern  Army  Group; 

Fighting  on  the  front  sectors  north  of  Lake  Ilmen  and  near 
Leningrad.  A  28  cm.  Army  battery  scored  five  hits  on  the  MARAT. 

2.   Finnish  and  Norwegian  Front; 

Troop  concentrations  in  front  of  the  Karelian  Army  lead  us 
to  expect  enemy  attacks  near  Vyonshosero  and  Maselskaya.  Enemy  at- 
tacks on  the  Mountain  Corps  are  also  continuing. 

5.   Horth  Africa; 

Small  enemy  forces  advanced  towards  the  Agedabia  position. 
The  counterattack  of  Group  Cruewell  against  the  22nd  British  Armored 
Brigade  50  km.  southeast  of  Agedabia  was  a  complete  success.  Fifty 
eight  armored  cars  and  many  other  vehicles  were  demolished. 

German  losses  from  18  November  to  15  December  19*1: 

Killed  70  Officers  601  noncommissioned  officers  and  men 
Wounded  113  Officers  2,092  noncommissioned  officers  and  men 
Missing 78  Officers    2,627  noncommissioned  officers  and  men 

Total;     261  Officers    5,320  noncommissioned  officers  and  men 


**•»*••*******•*#*«**•**• 


9862 

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CONFIDENTIAL 
29  Dec.  19*1 

ItemB  of  Political  Importance 

France : 

The  outbreak  of  hostilities  in  the  Pacific  has  aroused  concern  In 
Vichy  that  Tahiti  and  Nev  Caledonia  might  obtain  U.S.  recognition 
for  their  earlier  desertion  to  De  Gaulle;   this  would  result  in  an 
avkvard  situation  between  Vichy  and  Washington. 

Portugal ; 

The  Japanese  government  has  informed  the  Portuguese  envoy  to  Tokyo 
that  if  the  Australian  and  Dutch  occupation  of  Timor  continues, 
the  Japanese  Navy  will  be  forced  to  take  corresponding  measures. 

Foreign  diplomatic  sources  report  on  the  attempts  of  the  Portuguese 
government  to  keep  Argentina,  Brazil,  and  Chile  as  neutral  as  possi- 
ble at  the  Rio  Conference. 

U.3.S.R. :  v 

oee  Political  Review  No.  304,  Paragraph  4  for  the  Anglo-Russian 
communique  concerning  Eden's  conferences  vlth  Stalin  and  Molotov. 

U.S.A.; 

Roosevelt '8  statement  concerning  the  negotiations  vith  Churchill 
aid  the  Russian  and  Chinese  ambassadors,  as  veil  as  vlth  the  Cana- 
dian and  Dutch  East  Indian  representatives,  asserts  that  the  most 
important  task  of  the  conferences,  vhich  are  still  continuing,  is 
to  unite  into  one  front  the  military  and  Industrial  resources  of 
the  countries  resisting  the  Axis. 


Special  Items: 

I.  The  Chief,  Naval  Staff,  accompanied  by  the  Chief  of  Staff, 
Naval  Staff,  vent  to  Fuehrer  Headquarters  vhere  a  report  vas  made 
to  the  Fuehrer  in  the  evening.  The  main  point  of  the  discussion 
vas  the  question  of  operating  the  heavy  ships  TIRPITZ,  SCHARNHORST, 
GNEISENAU,  PRINZ  EUGEN,  and  SCHEER.   The  Fuehrer  withholds  his  de- 
cision until  the  situation  in  Norway  is  clarified.  The  defense  of 
Norway  is  of  decisive  importance  to  the  var.  Copy  of  the  confer- 
ence as  per  Naval  Staff,  Operations  Division  (l/Skl  I  op  2224/41 
Gkdos.  Chefs.)  in  Var  Diary,  Part  C,  Vol.  VII. 

« 

II.  Concerning  the  directive  of  the  Naval  Staff  about  reconnais- 
sance by  planes  and  submarines  north  of  the  British  Isles  and  a- 
round  Iceland,  Group  North,  vhich  took  over  execution  of  this  oper- 
ation (see  War  Diary  9  Dec),  forvarded  the  necessary  requests  to 
the  Commanding  Admiral,  Submarines  on  2j5  Dec,  and  declared  it 
necessary  to  start  reconnaissance  at  once.  According  to  the  policy 


9862 

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29  Dec.  19*1  CONFIDENTIAL 

laid  down  by  Group  North,  It  Is  desirable  for  operational  reasons 
to  make  use  of  opportunities  for  attacks  on  the  larger  warships  In 
order  to  disturb  the  enemy  and  to  simulate  an  organized  patrol  of 
the  Denmark  Strait  and  the  Norwegian  Sea  by  German  submarines.  He 
will  then  be  more  careful  about  committing  his  vessels  and  this 
will  benefit  German  break-through  operations  with  heavy  ships.  For 
the  same  purpose,  reconnoiterlng  submarines  should,  whenever  possi- 
ble, attract  attention  to  themselves  by  radioing  their  position  re- 
peatedly from  the  same  place. 

The  advantage  which  such  action  may  bring  is  of 
course  partially  offset  by  the  fact  that  the  enemy 
will  be  made  aware  of  the  significance  of  this 
area  in  connection  with  the  imminent  operations. 

III.  Contrary  to  the  last  report  from  the  Commanding  Admiral,  Bat- 
tleships, the  Chief,  Naval  Staff,  Quartermaster  Division,  Fleet 
Branch  reports  that  the  SCHARHHORST  can  fortunately  undock  after 
all  on  5  Jan..   Thus  the  delay  occasioned  by  damage  to  the  dock-gate 
is  of  no  great  importance.  Subsequent  repair  of  the  dock  will  take 
three  to  four  weeks .   The  Chief,  Naval  Staff  is  notified  of  this 
fact  before  the  beginning  of  the  conference  by  a  radiogram  to  Fueh- 
rer Headquarters. 


Situation  29  Dec.  19*1 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

North  Atlantic; 

According  to  an  announcement  by  the  U.S.  Maritime  Commis- 
sion, all  merchant  ships  will  receive  their  instructions  from  the 
Navy  Department.  Ships  must  steer  zig-zag  courses,  and  must  sail 
under  black-out.  According  to  a  report  from  the  Attache  Section, 
all  U.S.  ships  will  be  painted  dark  grey. 

South  Atlantic; 

U.S.  cruiser  MEMPHIS  left  Peraambuoo  with  destroyer  DAVIS 
on  3  Dec,  and  was  supposed  to  return  ten  days  later. 

Indian  Ocean: 

According  to  an  unconfirmed  Italian  report,  two  battle- 
ships left  the  Mediterranean  for  East  Asia  on  22  Dec. 

2.  Own  Situation; 

Instructions  to  ELSA  ESSBEBGER  and  SPREEVALD  to  change  rec- 
ognition signals  as  of  1  Jan.  19*2  by  Radiogram  2357. 


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29  Dec.  19^1  CONFIDENTIAL 

II.  Situation  Vest  Area 

1.  Enemy  Situation;  ■ 

No  special  events  observed  by  air  reconnaissance  In  ship- 
ping traffic  on  the  British  south  and  southwest  coasts. 

2.  Own  Situation; 

Atlantic  Coast; 

At  1755  unsuccessful  enemy  low-level  attack  on  commercial 
harbor  Brest,  Creach  Lighthouse,  and  Naval  Signal  Post  at  Ouessant. 

Channel  Coast; 

On  the  evening  of  28  Dec.  repeated  enemy  air  attacks  on 
Dunkirk  with  some  damage.  On  the  evening  of  29  Dec.  enemy  planes 
attacked  Ostend;   the  fishing  harbor  vas  not  damaged. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation; 

Slight  reconnaissance  activity.   In  the  afternoon  German 
air  reconnaissance  located  east  of  Harwich  a  force  proceeding  north, 
consisting  of  one  cruiser  and  seven  light  vessels;  otherwise  the 
usual  ship  and  convoy  traffic  on  the  southeast  and  east  coasts. 

Own  Situation; 

Radiograms  0257*  0817,  and  2019  contain  detailed  report 
by  North  Sea  Station  on  enemy  air  raids  and  damage  sustained  In 
Wllhe lms haven  and  Emden.  It  says  among  other  things  that  the  steam- 
er MONTE  PASCAL  was  slightly  damaged;  splinters  caused  damage  on 
destroyer  JACOBI,  fifteen  high  explosive  bombs  were  dropped  on  the 
dummy  Installations  at  No.  4  entrance.  At  Emden  submarines  were  not 
damaged;   there  was  slight  damage  at  the  construction  docks.  The 
enemy  used  special  planes  to  drop  flares  and  new- type  thin- shell 
bombs.  Four  planes  were  shot  down  by  naval  anti-aircraft  guns. 

2.  Norway; 

Enemy  Situation; 

At  1220  the  5th  Air  Force  reported  two  destroyers  and  two 
torpedo  boats  on  a  westerly  course  approximately  100  miles  west  of 
the  Lofoten  Islands,  and  at  1315  a  heavy  vessel  (battleship  or 
cruiser),  two  light  cruisers,  five  destroyers,  and  four  merchant 
ships,  course  250°  at  high  speed,  190  miles  west  of  the  Lofoten 
Islands.  Group  North  assumes  that  It  Is  a  westbound  convoy  from 
Archangel,  and  not  the  naval  forces  reported  In  the  Vest  Fjord  on 


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29  Dec.  1941  CONFIDENTIAL 

28  Dec,  which  might  still  he  at  Moskenesoe  where  air  reconnaissance 
was  impossible  due  to  snow  storms.  Other  Lofoten  Islands  are  not 
occupied  by  the  enemy. 

The  presence  of  steamers  does  not  necessarily  indi- 
cate a  convoy,  since  the  naval  forces  in  the  Vest 
Fjord  on  25  Dec.  were  accompanied  by  steamers  which 
could  have  been  brought  along  by  the  enemy  for  sup- 
plies. 

According  to  eyewitnesses,  the  British  destroyed  the  radio  station 
at  Soervaag  on  26  Dec,  captured  all  Nazi  sympathizers,  and  distri- 
buted 200  radio  sets  to  the  people.  Fishing  installations  were  not 
damaged.  Eighteen  small  warships  were  observed,  mostly  destroyers, 
and  the  captured  Norwegian  steamers  E0HO  HARALD  and  NORDLAND.  There 
were  many  British  and  Norwegian  soldiers,  but  no  sailors,  both  a- 
board  ship  and  on  land.  On  27  Dec  at  1000  the  British  went  aboard 
apparently  very  hurriedly  in  order  to  depart  at  1300. 

On  29  Dec.  the  bearings  of  an  enemy  submarine  off  Tana  Fjord  were 
taken.   An  Italian  report  states  that  the  Chief  of  the  British 
Home  Fleet  announced  on  13  Dec.  the  inadequacy  of  icebreakers  in  the 
White  Sea. 

Own  Situation: 

Three  of  the  six  enemy  Bristol -Blenheims  which  attacked 
the  convoy  steamer  MAGDALENE  VINNEN  on  27  Dec  (see  War  Diary  28 
Dec)  were  shot  down  by  subchaser  "14 04"  and  minesweeper  "23". 
The  oth  Destroyer  Flotilla  on  reconnaissance  patrol  in  the  Vest 
Fjord  sighted  no  enemy  forces  while  following  the  coast  from  Stam- 
sund  via  Ballstad  to  Nuss  Fjord  between  1130  and  1445.  Operation 
of  the  8th  PT  Boat  Flotilla  against  the  four  enemy  destroyers  re- 
ported off  Ofoten  Fjord  on  28  Deo.  likewise  remained  unsuccessful. 
Both  flotillas  came  into  Narvik  where  also  the  COBRA  was  anchored. 
Since  the  enemy  situation  in  the  Kirke  Fjord  still  seems  somewhat 
uncertain,  the  Commanding  Admiral,  Norway  postponed  the  mlnesweep- 
ing  operation  planned  for  29  and  30  Dec.  The  Commanding  Admiral, 
Norway  furthermore  foregoes  operation  of  submarine  U  "585",  so 
that  repairs  may  be  made  (see  Radiogram  1025)*  A  landing  operation 
at  Soeroe  is  suspected  from  enemy  radio  telephone  communications. 
The  island  bays  in  question  are  being  patrolled  by  the  12th  Sub- 
chaser Flotilla;   the  Army  has  been  asked  to  search  the  island  for 
a  secret  submarine  base  or  transmitting  station. 

Permission  was  granted  to  continue  convoys  except  in  the  Vest  Fjord. 
The  area  between  South  Eristiansand  and  Stavanger,  as  well  as  be- 
tween Floroe  and  Stadland,  is  still  closed  to  ship  traffic 

War  Diary,  Part  C,  Vol.  lift  contains  the  opinion  of  the  Armed  Forces 
High  Conmand  on  the  events  of  27  Dec.  This  includes  instructions 
for  increasing  coastal  defenses  by  bri  iglng  up  Army  forces  and  ma- 
teriel to  the  Commander,  Armed  Forces.  Norway  and  by  reinforcing 
the  Air  Force  from  units  in  the  Vest.  The  Commander  in  Chief,  Navy 
1r  be  Investigate  the  possibility  of  using  additional  torpedo  bat- 
ten.* a  (Naval  Staff,  Operations  Division,  l/Skl  I  op  2209/41  op  Okdos. 
Chefs.).  The  same  document  contains  a  report  by  the  Naval  Staff, 


C 


9862 

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♦ 


29  Dec.  19^1  CONFIDENTIAL 

Operations  Division  concerning  both  the  completed  torpedo  batteries 
and  those  under  construction  in  Norway.  The  Naval  Staff,  Opera- 
tions Division  cannot  recommend  a  greater  number  of  these  torpedo 
batteries  because  of  the  slight  operational  possibilities  and  mea- 
ger chances  for  success  as  opposed  to  the  very  considerable  expense 
necessary  to  set  them  up;   the  Chief,  Naval  Staff  was  Informed  to 
this  effect  by  teletype  message  to  Fuehrer  Headquarters. 


IV.  Skagerrak,  Baltic  3ea  Entrances,  Baltic  Sea 

1.  Enemy  Situation t 
Nothing  to  report. 

2.  Ovn  Situation; 

The  report  by  Group  North  on  28  Dec.  concerning  mlnelay- 
ing  in  the  Kronstadt  Channel  was  an  error.  Since  5  Dec.  no  mines 
have  been  laid. 

Due  to  Group  North's  report  dated  28  Dec.  about  the  increasingly 
critical  ice  situation  (see  War  Diary  28  Dec),  an  announcement 
vas  sent  from  the  Naval  Staff  to  Fuehrer  Headquarters,  Armed  Forces 
High  Command,  and  the  Army  High  Command  in  Radiogram  10J50  to  the 
following  effect:  It  is  impossible  to  escort  convoys  from  Oeroe  to 
Helsinki  vlth  minesweepers  with  equipment.  There  is  danger  that 
the  icebreaker  will  be  ice-bound  and  incapacitated  in  Reval  harbor. 
In  consideration  of  the  weather,  it  is  suggested  that,  since  re- 
sponsibility cannot  be  accepted  for  troop  transports  without  anti- 
mine  protection,  all  troop  transports  to  Finland  be  detoured  via 
Abo  and  all  troop  transports  for  the  Northern  Army  Group  be  re- 
routed to  Riga  and  Libau.  Furthermore  it  is  suggested  that  the  ice- 
breaker intended  for  Reval  be  sent  to  Libau  or  Riga. 

Steamer  MARIE  SIEDLER  with  a  cargo  of  grain,  ran  aground  near 
Sohwarzort.  Minelayer  "557"  was  lost  from  the  flotilla  unit  near 
Greifswalder  Ole  in  a  snowstorm  on  27  Dec.  at  1900  and  has  been 
overdue  since  that  time. 

Operations  in  the  area  of  the  Commander,  Defenses,  East  were  exe- 
cuted according  to  plan,  with  nothing  particular  to  report. 


V.   Merchant  Shipping: 

A  DNB  report  states  that  the  U.S.  Maritime  Commission  requisitioned 
Finnish  ships  in  U.S.  harbors. 

A  Portuguese  shipping  company  wishes  to  keep  up  traffic  to  U.S.  har- 
bors with  five  ships.  Brazilian  traffic  to  Portugal  is  also  to  be 
continued.  Aside  from  these,  only  the  eight  steamers  chartered  by 
Switzerland  will  be  sailing  between  Portugal  and  the  United  States. 


-291-  9862 


29  Doc.  19^1  CONFIDENTIAL 

VI.  Submarine  Warfare 

1.  Enemy  Situation: 

Convoy  HXB  165  vas  In  the  North  Channel  at  noon  on  28  Dec. 
A  plane  in  the  Iceland  area  reported  at  noon  on  28  Deo.  that  It  had 
come  upon  convoy  "Roman".  An  intelligence  report  from  Spain  states 
that  the  departure  of  a  convoy  from  Gibraltar  is  expected  on  30  Dec. 
According  to  a  report  from  the  Naval  Attache  in  Madrid,  personnel 
hired  by  the  British  Consul  at  Cadiz  has  been  assigned  to  the  bay 
and  the  roadstead  at  night  to  keep  a  lookout  for  German  submarines. 

2.  Own  Situation; 

The  German  Naval  Command,  Italy  reports  that  during  the 
night  of  28  Dec  German  submarines  sank  tvo  ships  and  damaged 
another  one  in  a  fast  eastbound  convoy  in  the  area  70  miles  north- 
east of  Bard la.   The  good  vork  of  Air  Force  reconnaissance  made 
this  success  possible.   (See  Radiogram  0900.)  Further  situation 
report  in  War  Diary,  Part  B,  Vol.  IV,  which  also  includes  an  analysis 
of  the  situation  by  the  German  Naval  Command,  Italy  concerning  subma- 
rine operations  east  of  Gibraltar,  and  the  opinion  of  the  Naval  Staff 
on  this  question.  For  copy  of  corresponding  teletype  message,  see 
l/Skl  Iu  2203/41  Gkdos.  Chefs,  in  War  Diary,  Part  C,  Vol.  IV. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

See  Situation  West  Area,  Arctic  Ocean,  and  Norway  for  re- 
ports of  air  reconnaissance.  The  5th  Air  Force  reports  a  steamer 
{4,500  BRT)  sunk  off  the  western  coast  of  the  Faroe  Islands.  In 
our  night  operations  of  29  Dec,  forty  nine  planes  attacked  New- 
castle with  poor  results  due  to  bad  visibility.  Five  He  155*8 
made  bomb  and  torpedo  attacks  on  merchant  ships  in  the  Irish  Sea, 
but  without  results. 

2.  Mediterranean  Area; 

Armed  reconnaissance  planes  attacked  two  destroyers  off 
Valetta  without  success.  Planes  given  freedom  of  aetlon  sank  with 
gunfire  a  three-masted  sailing  ship  off  Valetta  harbor  entranoe, 
successfully  attacked  four  submarines,  and  shot  down  four  Hurri- 
canes. 

3.  Eastern  Front; 

4th  Air  Force  units  reported  sinking  a  Russian  torpedo 
boat  and  damaging  a  cruiser  off  Feodosiya.  See  Enemy  Situation, 
Blaok  Sea  for  reports  of  reconnaissance. 


9862 
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29  Dec.  19^1  CONFIDENTIAL 

VIII.  Warfare  In  the  Mediterranean 

1.  Enemy  Situation! 

Western  Mediterranean; 

In  Gibraltar  there  vere  twelve  steamers  and  tvo  destroyers 
more  than  on  28  Dec,  and  tvo  torpedo  boats  fever. 

Central  and  Eastern  Mediterranean; 

There  are  no  reports  concerning  sighting  enemy  naval  forces. 
However,  according  to  Italian  radio  monitoring,  the  Commander,  1st 
Battle  Squadron  was  still  at  sea  with  cruisers  and  destroyers. 
Cruisers  PENELOPE  and  AURORA  vere  also  located  vlth  accompanying  de- 
stroyers In  the  area  off  Alexandria.  Since  AURORA  vas  located  on 
28  Dec.  at  0915  still  130  miles  east  of  Malta,  It  may  be  assumed 
that  the  vessel  participated  In  the  convoy  escort  to  Alexandria  re- 
ported by  our  air  reconnaissance  on  28  Dec. 

2.  Situation  Italy: 

One  large  lighter  vas  sunk  during  artillery  attack  on 
Bardla  on  the  evening  of  28  Dec  An  Italian  report  states  that  on 
28  Dec.  at  1500  Italian  torpedo  planes  north  of  Raz  Asaaz  attacked 
the  convoy  vhloh  had  been  announced  on  28  Dec.  Hits  vere  reported 
on  one  cruiser  and  one  steamer;  a  probable  hit  vas  scored  on  another 
steamer. 

Thus  this  convoy  has  successfully  been  attacked  by 
German  and  Italian  planes  as  veil  as  by  German  subma- 
rines. 

3.  Transport  of  Supplies  to  Worth  Africa; 

Four  naval  barges  entered  Tripoli.  Three  transport  sub- 
marines are  Intended  for  gasoline  supply  to  Tripoli;  the  remainder 
of  those  which  are  ready  are  Intended  for  Bardla.  They  will  depart 
betveen  31  Dec.  and  8  Jan..  Steamer  ACHAIA  departed  from  Palermo 
and  Is  proceeding  under  escort  of  one  torpedo  boat  as  far  as  Cape 
Boh,  from  there  to  proceed  along  the  coast  to  Tripoli.  The  next 
steamer  voyaging  alone  to  Tripoli  will  be  the  STURMA. 

4.  Area  Naval  Group  South: 

Aegean  Sea; 

The  "Siena"  transport  squadron  (see  War  Diary  28  Dec.) 
returned  to  Piraeus  because  of  bad  veather.  Lively  enemy  air 
activity  over  Chalkls,  Euboea,  and  Suda;  at  Suda  slight  damage  vas 
done  to  building  materials  In  the  dump  of  the  Naval  Construction 
Office. 

Black  Sea: 

Air  reconnaissance  revealed  that  tvo  destroyers  and  four 
steamers  vere  at  Feodosiya.  E'  tvoen  1200  and  1600  three  convoys  of 


9662 

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29  Dec.  19^1  CONFIDENTIAL 

twelve  steamers  in  all  under  escort  and  one  other  steamer  convoyed 
"by  tvo  cruisers  were  sighted  off  Peodosiya  putting  out  to  sea. 

Vest  of  Anapa  four  steamers  vere  sighted  on  westerly  course.   In 
Taman8kaya  Bay  there  were  three  steamers  and  nine  boats,  twenty 
boats  in  the  Kerch  Strait,  and  north  of  Kerch  Peninsula  a  convoy 
of  eight  steamers  with  two  cruisers  on  easterly  course.  This  heavy 
traffic  is  without  doubt  connected  with  the  enemy's  intention  of 
occupying  Feodosiya. 

The  Russian  tanker  VATTJANT  CUTURIER,  loaded  with  gasoline,  entered 
the  Bosporus. 

Own  Situation; 

The  Port  Captain  at  Kerch  reports  that  the  XLII  Army  Corps 
is  vacating  the  Kerch  Peninsula  as  far  as  Feodosiya.  In  response  to 
the  Army's  wish,  parts  of  the  Shore  Command  are  being  transferred 
from  Yasl  to  the  Crimea  in  order  to  provide  coastal  defense  on  the 
northwest  Crimea  and  to  strengthen  the  defense  of  Eupatoria  and  Ak 
Mechet.  According  to  a  report  of  Group  South,  these  units  are  weak 
and  very  superficially  trained.  Their  transport  by  air  to  the  Cri- 
mea has  been  authorized.  Sinoe  the  only  submarine,  DELFINUL,  is 
out  of  action,  since  the  two  Rumanian  destroyers  whioh  are  ready 
for  action  are  quite  insufficient  for  these  operations,  and  since 
more  forces  are  not  available,  no  support  can  be  given  the  11th 
Army  by  sea.   (See  Radiogram  2356.)  Radiogram  2121  notifies  the 
Naval  Liaison  Officer  to  the  Army  High  Command  of  this  faot. 

The  Naval  Liaison  Officer  to  the  Army  High  Command  transmitted  on 
23  Dec.  the  investigation  report  of  the  Chief  Supply  and  Administra- 
tion Officer  of  the  Army  General  Staff  concerning  supply  traffic  by 
ships  aero s 8  the  Black  Sea.  The  availability  of  tankers  is  consid- 
ered essential.  The  report  differentiates  between  the  following 
six  operations: 

1.  Supply  of  the  11th  Army  High  Command  after  the  fall  of 
Sevastopol. 

2.  Supply  of  the  1st  Panzer  Army  for  the  attack  on  Rostov. 
2.   Advance  on  Maikop. 

4.  Seizure  of  the  approach  areas  on  the  northern  edge  of  the 
Caucasus  as  far  as  Tuapse  and  Makhach  Kala. 

5.  Attack  across  the  Caucasus. 

6.  Seizure  of  Transcaucasia. 

Supplementary  Information  by  the  Naval  Liaison  Officer  to  the  Armed 
Forces  High  Command  and  a  map  marked  with  the  desired  transport 
routes  are  added  to  the  investigation  report.   Counterproposals  are 
left  to  the  discretion  of  the  Naval  High  Command.   The  start  of  the 
operations  may  even  have  to  be  made  dependent  on  the  state  of  pre- 
paredness of  overseas  supply  units. 


9862 


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29  Dec.  19^1  CONFIDENTIAL 

In  the  opinion  of  the  Naval  Staff,  Operations  Division,  the  moderate 
requirements  of  the  Chief  Supply  and  Administration  Officer,  Army 
can  he  fulfilled  as  desired  from  the  operational  point  of  vlev,  If 
the  future  enemy  situation  still  permits.  The  problems  of  cargo 
space  is  to  he  clarified  by  the  Naval  Staff,  Quartermaster  Division, 
Shipping  and  Transport  Branch.  The  Naval  Staff  will  then  attend  to 
the  operational  side  of  the  matter. 


IX.  Situation  East  Asia; 

Press  reports  state  that  Ipoh  was  taken.  According  to  Domel,  Ad- 
miral Shimada  announced  enemy  and  Japanese  losses  to  the  Japanese 
Senate  as  follows: 

Enemy  losses: 

Battleships:  Seven  sunk,  three  heavily  damaged,  one  slight- 
ly damaged 

Cruisers:     Two  sunk,  two  heavily  damaged,  four  slightly 
damaged 

Destroyers:   One  sunk,  four  damaged 

Submarines:   Nine  sunk,  many  more  probably  destroyed 

Smaller  vessels:  Six  gun  boats  and  more  than  six  torpedo 

boats  sunk,  two  gun  boats  and  one  aux- 
iliary vessel  damaged 

Sixteen  merchant  ships  sunk,  three  damaged;  fifty  vessels 
totalling  130,000  tons  and  each  over  200 
tons  (Domel  says  400  tons)  requisitioned 

Japanese  losses: 

Three  destroyers  and  one  minesweeper  sunk 
One  minesweeper  heavily  damaged 
One  light  cruiser  slightly  damaged 
Five  special  submarines  missing 

There  are  no  other  important  reports. 


X.   Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

The  enemy  began  a  counterattack  against  the  LIV  Army  Corps 
along  the  whole  front  near  Sevastopol.  Battles  are  still  continu- 
ing. During  the  early  morning  an  enemy  landing  took  place  at 


9862 
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29  Dec.  19^1  COHFIDEHTIAL 

Feodosiya  and  northeast  of  the  city  after  enemy  aerial  preparation. 
The  landing  could  not  be  repulsed.  Feodosiya  has  been  abandoned. 
The  11th  Army  High  Command  Intends  to  defend  the  Crimea  in  Kerch 
Peninsula  and  to  win  back  Feodosiya.  Light  activity  among  the 
other  armies  of  this  group. 

Central  Army  Group: 

Attacks  against  the  2nd  Army  along  the  vhole  front.  The 
enemy  broke  through  an  uncovered  loophole  north  of  Droskovo  as  far 
as  Nlkolayevka.   In  the  4th  Army  sector  Vorotynsk  had  to*  be  given 
up  to  enemy  of  superior  strength.  In  the  9th  Army  sector  our  at- 
tack against  cavalry  south  of  Baklanovo  was  stopped  by  strong  enemy 
forces.  The  XXII  Army  Corps  drew  back  Its  lines.   In  all  other 
sectors  of  the  Central  Army  Group  the  enemy  could  either  be  stopped 
or  thrown  back. 

northern  Army  Group: 

Enemy  activity  in  the  front  sectors  north  of  Lake  Ilmen. 
In  general  a  quiet  day  on  the  Leningrad  front. 

2.  Finnish  and  Norwegian  Front: 

Skirmishes  near  Oshta  and  south  of  Ukhta.  Otherwise  the 
situation  is  unchanged. 

3.  Worth  Africa: 

The  22nd  Guards  Brigade  drew  closer  to  the  Agedabla  posi- 
tion from  the  northeast.  Group  Cruevell,  continuing  the  counterat- 
tack, took  El  Halaiat  with  the  German  Afrika  Korps,  and  the  area 

30  km.  southeast  of  Agedabla  with  the  Italian  Motorized  Corps.  Dur- 
ing the  engagements  on  28  and  29  Dec.  a  total  of  sixty  five  armored 
cars  and  twenty  four  scout  cars  were  destroyed  and  230  prisoners 
taken. 

One  hundred  and  twenty  enemy  bombers  attacked  Bardla.  Strong  enemy 
artillery  activity  on  the  Bardla- Hal faya  front. 


•*«**•***•••••*•*••*•*••• 


( 


9862 

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CONFIDENTIAL 


30  Dec.  19*1 

Items  of  Political  Importance 

France: 

See  Political  Review  No.  305,  Paragraph  1  for  information  concerning 
Franco -American  disagreement  about  the  islands  of  St.  Pierre  and 
Hiquelon. 

Spain: 

The  German  Ambassador  reports  that  the  Spanish  government  will  make 
a  strong  protest  to  the  British  government  for  the  severe  violation 
of  territorial  rights  during  the  attack  on  the  BENNO. 

U.8.S.R.: 

According  to  a  neutral  diplomat's  report,  the  press  is  less  opti- 
mistic about  the  development  of  recent  operations.  Some  of  the 
evacuated  offices,  especially  cultural  institutes,  have  returned 
to  Moscow. 

Arabia : 

See  Political  Review  No.  305,  Paragraph  4  for  the  interview  granted 
by  the  Grand  Mufti  of  Jerusalem  to  the  Japanese  press  concerning  the 
historical  renaissance  of  the  Asiatic  Continent  and  the  effect  of 
Japanese  victories  on  India  and  the  Arabs. 

Ecuador: 

A  dependable  report  states  that  an  agreement  was  completed  on  11  Nov. 
between  the  U.S.A.  and  Ecuador  concerning  lease  of  the  Galapagos  Is- 
lands. 

Japan: 

Political  Review  No.  305,  Paragraph  8a  contains  the  German  Ambassa- 
dor's report  on  Japanese  ideas  about  the  future  political  structure 
of  Hong  Kong  and  the  Philippines,  as  well  as  of  Malaya  and  Burma. 

The  Japanese  Ministry  of  Information  declares  that  relations  with 
Russia  are  extremely  friendly  and  are  based  on  the  neutrality  pact. 
Japan  must  watch  the  attitude  in  South  America  very  carefully.  So 
far  Argentina,  Chile,  Brazil,  and  Peru  have  not  declared  war  on 
Japan;  but  the  possibility  must  be  considered  that  these  countries, 
too,  might  be  drawn  into  the  war  on  the  side  of  the  United  States. 

New  Zealand: 

The  Prime  Minister  emphasized  that  Washington  had  gained  unusual 
significance  for  New  Zealand  now  that  the  Pacific  has  become  the 
main  theater  of  war. 


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9862 


30  Dec.  19*1  CONFIDENTIAL 

Conference  on  the  Situation  with  the  Chief,  Naval  Staff. 

As  a  result  of  the  Fuehrer's  vievs  recorded  on  the  occasion  of  a  re- 
port by  the  Chief,  Naval  Staff  concerning  a  surprise  dash  through 
the  Channel  to  he  attempted  by  the  ships  at  Brest  (see  War  Diary 
29  Dec),  the  Chief,  Naval  Staff  orders  the  competent  offices  to 
investigate  the  possibilities  of  such  an  operation.  For  this  pur- 
pose there  vill  be  a  conference  in  Paris  on  30  D*c  with  Commanding 
Admiral,  Group  West,  at  vhich  Fleet  Commander;   and  Commanding  Ad- 
miral, Battleships  will  be  present.  The  Naval  Staff,  Operations 
Division  will  be  represented  by  the  Chief,  Operations  Branch. 

The  Chief,  Naval  Staff  announces  that  besides  Field  Marshals  von 
Brauchltsch,  von  Rundstedt,  and  von  Bock,  Generals  Guderian,  Foerster, 
and  von  Sponeck  have  also  been  relieved. 


Situation  30  Dec.  1941 

I.   War  In  Foreign  Waters 

1.  Enemy  Situation: 

North  Atlantic: 

Cruiser  NEWCASTLE,  which  was  up  to  now  in  a  U.S.  shipyard, 
has  put  to  sea,  probably  on  return  voyage  home.  ILLUSTRIOUS  was  lo- 
cated at  Liverpool  on  30  Dec. 

South  Atlantic: 

OMAHA  left  Pernambuco  with  destroyer  SOMERS  on  22  Dec. 
One  U.S.  destroyer  entered  Natal  for  the  day  on  29  Dec.   INDOMITABLE 
was  located  in  the  Cape  of  Good  Hope  area  en  route  to  Durban. 

Pacific  Ocean: 

PERTH  departed  22  Dec.  from  unknown  port  bound  for  Sidney. 
On  the  same  day  ACHILLES  left  More ton  Bay  for  unknown  rendezvous. 

2.  Own  Situation: 

Information  on  enemy  situation  in  Radiogram  2244.  Memo- 
randum by  the  1st  Gunnery  Officer  of  ship  nl6n,  Lt.  Kasch,  con- 
cerning artillery  armament  of  auxiliary  cruisers  is  being  forwarded 
to  the  Naval  Staff,  Quartermaster  Division,  Fleet  Branch  with  the 
recommendation  that  the  principles  therein  be  considered  in  the 
preparation  of  further  auxiliary  cruisers.  Copy  in  War  Diary,  Part  C, 
Vol.  I,  l/Skl  Ik  29487/41  Okdos. 


9862 
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30  Dec.  19*U  CONFIDENTIAL 

II,  Situation  Vest  Area 

1.  Enemy  Situation i 

Air  reconnaissance  shoved  that  five  light  vessels  were 
30  miles  vest  of  the  southern  tip  of  Ireland  around  noon. 

2.  Ovn  Situation: 

Atlantic  Coast: 

On  the  basis  of  the  BENNO  experience  and  information  from 
the  radio  intercept  service,  Group  Vest  reports  the  following  con- 
cerning departures  and  arrivals  of  blockade-runners; 

"a.  Outbound  route  has  proved  good. 

"b.  It  is  unknown  vhether  air  reconnaissance  has  been 
Increased  as  a  matter  of  routine  or  as  flank  protection  for  convoys. 
The  enemy  is  capable  of  quick,  strong  air  force  operations  from 
land.  They  are  probably  using  locating  devices,  to  judge  from  night 
operations  in  combination  vith  accurate  use  of  flares.  The  best  de- 
fense is  timely  anti-aircraft  fire. 

"c.  Blockade -running  is  made  more  difficult  because  of 
the  reasons  presented  in  "b".  Dark  nights  and  bad  visibility  are 
the  best  protection.  The  times  of  heavy  convoy  traffic  are  to  be 
reported. 

"d.  Spanish  territorial  waters  are  no  longer  protection 
against  enemy  attack."  (See  Radiogram  1120.) 

Instructions  have  been  issued  to  Group  Vest  for  bringing  in  ELSA 
ESSBERGEB,  loaded  vith  rubber,  the  arrival  of  which  is  expected 
5  Jan.  1942  in  quadrant  CD  31,  and  12  Jan.  in  Bordeaux.  The  ship 
vill  be  brought  in  like  the  BURGENLAHD.  One  submarine  will  meet 
her  in  CD.  The  ship  has  orders  to  steer  towards  Spanish  terri- 
torial vaters  betveen  Vigo  and  Ortegal.  In  viev  of  the  BENNO  in- 
cident, the  Naval  Staff  considers  that  passage  through  territorial 
vaters,  which  have  been  used  often  lately,  is  not  practical.  Group 
Vest  vill  take  over  command  on  5  Jan.  at  0000. 

Channel  Coast: 

The  Commander,  Torpedo  Boats  reports  that  detour  of  con- 
voys north  of  Cromer  is  most  probably  the  result  of  our  mlnelaylng 
operations.   (See  Radiogram  1020.) 

Eight  ground  mines  vere  swept  on  route  "Rosa"  on  30  Dec.  Other- 
vise  nothing  to  report. 


III.  Worth  Sea,  Norway,  Arctic  Ocean 
1.   North  Sea:: 

do thing  to  report. 


9862 

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30  Dec.    19*1  COBTFIDEiyTIAL 

2.        Norway; 

Enemy  Situation: 

Radio  monitoring  located  four  vessels,  probably  one  British 
and  three  Russian,  in  the  Murmansk  coastal  area.  According  to  air 
reconnaissance,  Vest  Fjord  is  free  of  enemy  forces.  Kirke  Fjord  and 
Moskenesoe  could  not  be  observed  on  28  and  29  Dec.  because  of  snow 
storms.  The  Admiral,  Arctic  Coast  reported  by  telephone  that  British 
naval  forces  left  Kirke  Fjord  on  28  Dec.  at  1600.  KONG  EARALD  and 
NORDLAND  are  lying  there  damaged.  British  rumors,  spread  intention- 
ally, spoke  of  a  larger  action  in  the  next  few  days  in  order  to  occupy 
permanently  the  Lofoten  Islands,  the  Vester  Aalen  Islands,  and 
Bodoe.  Eighty  U.S.  transports  would  be  used  for  this  operation. 

Own  Situation! 

The  8th  Destroyer  Flotilla,  the  8th  PT  Flotilla,  and  COBRA 
are  in  Narvik.  The  mine  project  in  Kirke  Fjord  has  been  abandoned. 
The  flotillas  will  proceed  to  Tromsoe  on  31  Dec.  with  LTJEDERITZ  and 
COBRA.  After  being  temporarily  opened,  Groet  Sound  was  closed  again 
on  30  Dee.  because  mines  are  suspected.   The  sinking  of  steamer  KONG 
RUG  on  26  Dec.  is  probably  attributable  to  mines  after  all. 

The  Admiral,  Arctic  Ocean  has  instructions  from  the  Commanding  Ad- 
miral, lorway  to  operate  his  vessels  at  his  discretion,  since  from 
our  Information  the  departure  of  the  enemy  can  be  taken  for  granted 
(see  Radiogram  1750). 

According  to  a  report  from  the  Commander,  1st  Het  Barrage  Unit,  a 
net  enclosure  for  one  battleship  and  a  single  net  for  submarines 
have  been  completed  in  the  Narvik  area  under  the  present  program 
of  constructing  safety  measures.  A  second  net  enclosure  and  a  sec- 
ond submarine  net  will  probably  be  ready  in  the  near  future.  Under 
the  same  program,  the  Commanding  Admiral,  lorway  had  requested  the 
5th  Air  Force  Command  at  the  beginning  of  December  to  assign  pursuit 
planes  and  bombers  to  northwestern  Norway.  Remarking  that  the  main 
objectives  of  the  5th  Air  Force  are  in  the  eastern  area,  the  5th  Air 
Force  Command  answered  that  the  defense  of  the  anchorages  for  naval 
vessels  must  be  assumed  by  the  Navy  with  every  available  active  and 
passive  measure;   if  necessary  the  Air  Force  will  operate  with  all 
the  means  at  its  disposal  from  Banik  and  Stavanger,  depending  on  the 
situation,  including  weather  conditions,  at  the  time.   In  addition 
the  5th  Air  Force  will  try,  depending  on  the  situation  in  the  west- 
ern and  eastern  areas,  to  transfer  its  forces  to  Bardufoss  tempo- 
rarily, provided  it  is  notified  in  time  about  the  Intended  number 
of  vessels  at  each  anchorage. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 

Group  forth  agrees  with  the  proposal  of  the  Commander,  Minesweepers, 
lorth  to  open  route  80  between  Blau  16"  and  "Blau  18A"  to  ships 
sailing  alone.   (See  Radiogram  1607.) 

A  border  patrol  on  Ruegen  heard  a  heavy  detonation  coming  from  the 
sea  on  27  Dec.  at  2305.  It  is  very  probable  that  minesweeper  "557", 


9862 

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30  Dec.  1941  CONFIDENTIAL 


vhlch  lost  contact  vlth  its  unit  near  Greifsvalder  Ole  on  the  84 
day  at  1900,  ran  over  an  aerial  mine,  the  laying  of  vhich  vas  ob- 
served in  October  194 1  in  the  Bay  of  Pomerania.  All  further  search 
for  the  boat  has  been  in  vain. 

Otherwise  nothing  to  report. 


V.   Submarine  Warfare 

1.  Enemy  Situation: 

According  to  radio  monitoring,  convoy  SL  95B  vas  at  AM 
6466  on  31  Dec.  at  1000.  A  British  patrol  boat  vas  about  300  miles 
vest-southvest  of  the  Canary  Islands  on  29  Dec,  and  the  cable  ship 
MIRROR  vlth  escort  vas  near  Horta. 

2.  Ovn  Situation; 

Report  in  War  Diary,  Part  B,  Vol.  IV. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

Fifteen  four-motored  Ballfaxes  vlth  fifteen  pursuit  planes 
attacked  Brest  from  1500  to  1535.  Three  of  the  former  and  six  of 
the  latter  vere  shot  down.  One  floating  crane  capsized,  and  one 
pump  steamer  vas  damaged.  Our  armed  reconnaissance  planes  attacked 
a  British  steamer  of  2,000  BRT  vith  three  aerial  torpedoes  off  the 
mouth  of  the  Tajo  vithout  success.  Seven  smaller  steamers  off 
Queens tovn  vere  not  attacked  vith  aerial  torpedoes,  as  the  targets 
did  not  seem  vorth  it.  The  attack  vas  made  vith  machine  guns. 

2.  Mediterranean  Area: 

See  Enemy  Situation,  Eastern  Mediterranean  for  reports  of 
reconnaissance . 

3.  Eastern  Front: 

In  the  harbor  of  Feodosiya  one  steamer  of  3,000  BRT  vas 
damaged  and  three  more  vere  probably  damaged  during  several  attacks. 
For  reports  of  reconnaissance,  see  Enemy  Situation,  Black  Sea. 

4.  Special  Items: 

In  response  to  the  Naval  Staff's  request  that  the  3rd  and 
5th  Air  Forces  send  reports  of  reconnaissance  to  Oroup  North,  the 
Air  Force  General  vith  the  Commander  in  Chief,  Navy  transmits  the 
answer  of  the  3rd  Air  Force  that  it  already  passes  all  such  Informa- 
tion on  to  Group  West,  and  that  Group  North  can  get  it  from  there. 
(See  Radiogram  2045)* 


9862 

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30  Dec  19*1  CONFIDENTIAL 

This  Matter  must  be  clarified  as  requested.   The  de- 
tour of  information  via  Group  Vest  makes  worthless 
the  execution  of  reconnaissance  tasks  specially  as- 
signed to  Group  North. 


VII,  Warfare  in  the  Mediterranean 

1.  Bneay  Situation; 

Western  Mediterranean: 

MALAYA,  ARGUA,  HERMIONS,  DIDO,  about  fifteen  destroyers, 
and  five  submarines  are  at  Gibraltar.   Polish  passenger  ship  BATORY 
left  with  three  destroyers  during  the  evening. 

Central  and  Eastern  Mediterranean: 

Since  QUEEN  ELIZABETH,  VALIANT,  and  BARHAM  are  in  the  Alex- 
andria area,  the  Italian  reports  concerning  the  departure  of  two  bat- 
tleships from  the  Mediterranean  for  East  Asia  are  probably  not  cor- 
rect. Four  submarines  arrived  at  Malta  during  the  afternoon  of  29 
Dec.  During  the  morning  of  30  Dec.  air  reconnaissance  located  sev- 
eral ships  sailing  individually  under  escort  and  a  group  of  naval 
forces  consisting  of  one  battleship,  two  light  cruisers,  and  four 
destroyers  off  the  coast  between  Marsa  Matruh  and  Tobruk.   The  unit 
was  proceeding  north.  At  the  same  time  Italian  radio  intelligence 
located  the  command  of  the  1st  Battleship  Squadron  in  port,  and  one 
battleship,  the  cruiser  AJAX,  and  the  destroyers  HIGHLANDER,  SIKH, 
and  LBGIOI  at  sea  off  the  coast  of  Cyrenaica.  An  Italian  agent  re- 
ports that  submarines  TEMPEST  and  TURBULENT  will  sail  from  Britain 
to  Alexandria  in  the  near  future. 

2.  Own  Situation: 

During  the  night  of  30  Dec,  the  3rd  PT  Boat  Flotilla 
laid  mines  off  Malta.  Report  on  completion  of  mission  not  yet 
available . 

3.  Situation  Italy: 

Italian  merchant  shipping  was  further  damaged  by  subma- 
rine attacks  on  tanker  CAMPINA  which  sank  near  Zante,  and  on  motor 
ship  CITTA  DI  MARSALA  which  was  torpedoed  near  Argostoll.  During 
the  night  of  28  Dec.  enemy  air  raids  on  Tripoli  without  damage  to 
military  Installations.  Bardie  was  shelled  repeatedly  between  1245 
and  1400.  Acoording  to  a  report  from  the  Supply  and  Transport  Of- 
fice, a  lighter  was  sunk  and  the  last  available  lighter  severely 
damaged.  An  Italian  motor-mine sweeper  was  also  severely  damaged. 
The  transfer  of  auxiliary  sailing  vessels  from  the  Aegean  area  is 
thus  of  special  importance.  German  Naval  Command,  Italy  is  taking 
the  matter  up  with  Commanding  Admiral,  Aegean  Sea  (see  Radiogram 
2100). 

Acoording  to  information  from  the  Italian  Navy,  the  British  sailors 
picked  up  on  24  Dec.  near  Misurata  say  that  the  cruiser  group  NEP- 


fMI 

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30  Deo.  19*1  CONFIDENTIAL 

TUNE,  AURORA,  and  PENELOPE  had  left  Valetta  on  the  night  of  18  Dec. 
in  order  to  intercept  the  53rd  Transport  Squadron  off  Tripoli.  At 
0315  flagship  NEPTUNE  struck  at  least  two  mines  in  barrage  D  off 
Tripoli,  and  sank  in  an  hour.  A  further  detonation  seems  to  have 
involved  a  destroyer  bringing  aid.   (See  Radiogram  0700  from  the 
German  Naval  Command,  Italy 


3 


Barrage  D  is  part  of  the  outer  barrage  for  the  defense  of  Tripoli; 
it  consists  of  140  German  EMC  mines  vlth  lover  antenna,  and  vas 
laid  on  1  May  19^1  according  to  the  German  specifications  and  the 
mining  order  worked  out  to  the  last  detail  by  the  Naval  Staff,  Op- 
erations Division,  Mine  Warfare  and  Anti- Submarine  Section.   In 
spite  of  German  insistence,  unfortunately  the  barrage  vas  not  laid 
until  after  heavy  British  forces  had  shelled  the  harbor  of  Tripoli 
on  21  April.  The  position  of  the  barrage  as  suggested  at  the  time 
by  the  Naval  Staff  therefore  has  proved  correct. 

In  regard  to  this  gratifying  success,  which  is  after  all  German, 
the  Admiral,  German  Naval  Command,  Italy  reports  as  follows: 

« 

"1.  The  sinking  of  the  NEPTUNE  by  mines  may  be  of  de- 
cisive Importance  for  holding  Tripolitania.  Without  this  event, 
the  British  cruiser  group  reported  by  air  reconnaissance  would  very 
probably  have  destroyed  the  Italian  convoy  on  19  Dec.  before  it 
ever  entered  Tripoli. 

"The  steamers  of  the  convoy  on  this  night  were  en  route  to  Tripoli 
from  the  area  east  of  Horns;   they  were  travelling  singly,  each 
covered  by  two  destroyers.  The  escorting  cruisers  had  turned  back 
to  Italian  home  bases  at  nightfall  because  of  expected  attacks  by 
torpedo  planes  from  Malta.  This  information  has  -just  now  become 
known. 

"It  is  certain  therefore  that  the  operations  of  the  entire  Italian 
Fleet  as  well  as  the  operations  and  actions  of  the  German  and 
Italian  Armed  Forces  for  the  protection  of  the  53rd  Transport 
Squadron,  would  have  been  in  vain  if  the  NEPTUNE  group  had  not 
been  prevented  from  executing  its  mission  of  annihilation  by  the 
loss  of  its  flagship.  It  would  have  been  impossible  to  evade  the 
British  unit  because  it  was  deployed  off  the  harbor.  Furthermore 
during  the  night  British  reconnaissance  planes  established  contact 
with  the  convoy  and  bombed  it. 

"2.  There  is  no  doubt  that  the  loss  of  the  actual  sup- 
plies brought  by  the  three  steamers  at  the  peak  of  the  crisis  in 
North  Africa  would  have  had  the  severest  consequences.  The 
psychological  effect  might  have  put  an  end  to  Italian  resistance. " 

The  Admiral,  German  Naval  Command,  Italy  then  tells  of  the  diffi- 
culty he  had  in  urging  the  Italians  to  execute  the  German  plan,  and 
that  he  himself  went  aboard  one  of  the  Italian  cruisers  laying  the 
barrage.   In  concluding  he  remarks  that  the  German  Navy  can  take 
credit  for  having  played  a  decisive  role  in  saving  Tripolitania. 
(See  Radiogram  2100.) 

The  Naval  Staff  agrees  completely  with  the  analysis 
of  this  success  by  the  German  Naval  Command,  Italy, 
and  is  especially  pleased  that  mine  warfare  can  book 


9862 
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30  Dec.  19*1  COHFIDBHTIAL 

two  suoh  decisive  successes  as  Jumlnda  and  Tripoli 
vithln  half  a  year. 

4.   Transport  of  Supplies  to  Worth  Africa; 

The  s teaser  ACHAIA  is  en  route  to  Tripoli.  Two  transport 
submarines  are  on  return  voyage  from  Bardia,  and  one  transport  sub- 
marine is  en  route  to  that  port.  Four  special  command  ferries  (33 
Paehren)  ran  aground  near  Ras  el  Aali. 


On  2  Jan.  a  transport  squadron  consisting  of  six  steamers  is  to  sail 
from  south  Italian  ports  for  Tripoli.  Escort  Is  to  be  provided  by 
four  battleships,  two  heavy  and  three  light  cruisers,  and  twenty  nine 
torpedo  carriers. 

5.   Area  Haval  Group  South; 

Aegean  Sea; 

Enemy  Situation; 

According  to  report  from  the  Haval  Attache,  Istanbul,  the 
Russian  tanlcer  sunk  vas  tanker  AVAHESOV,  the  crev  of  which,  includ- 
ing a  number  of  British  General  Staff  officers,  has  been  brought  to 
Istanbul. 

Own  Situation; 


Suda. 


Supply  squadron  "Siena"  has  once  more  left  Piraeus  for 

Black  Sea; 

Enemy  Situation; 

According  to  a  report  from  the  4th  Air  Force,  three  steam- 
ers, four  boats,  and  one  destroyer  were  left  in  Feodosiya  after  one 
cruiser,  two  destroyers,  and  one  steamer  had  departed.  South  of 
Kerch  several  steamers  were  sighted  on  westerly  course,  some  of  thei 
towing  boats.  Two  destroyers  in  Hovorosslsk.  Prisoners  say  that 
the  cruiser  sunk  on  13  Nov.  in  the  air  raid  off  Sevastopol  was  the 
CHERVOHATA  UKRAIHA. 

Own  Situation; 

No  mlnesweeplng  because  of  bad  weather.  Rumanian  destroy- 
er REGELE  FERDINAND  out  of  action  for  one  day  because  of  spotted 
typhus. 

Group  South  Informs  the  11th  Army  Headquarters  and  subordinate  com- 
mands Involved  that  it  is  possible  to  use  available  forces  of  Haval 
Shore  Commands  "U"  and  "V"  for  strengthening  harbor  and  coastal  de- 
fenses. Transportation  would  have  to  be  furnished  by  the  11th 
Army  Headquarters,  however,  since  naval  transport  vessels  are  still 
under  way.  Group  South  points  out  that  the  German  railroad  battery 
628  (three  28  cm.  guns),  set  up  near  Constanta,  oan  be  released  by 
the  Navy  for  the  present. 


9862 

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30  Dec.  19^1  CONFIDENTIAL 

In  order  to  strengthen  the  defense  by  aerial  mines  as  soon  as  possi- 
ble, the  ^th  Air  Force  will  have  to  bring  up  the  necessary  squadrons 
for  laying  not  only  BM  1000,  but  also  blue,  red,  and  green  aerial 
mines.   The  planes  must  be  able  to  lay  mines  continuously,  not  only 
just  once.   Points  of  operation  are:  Kerch  Strait,  Feodosiya  har- 
bor, and  Yalta;   mining  must  be  intensified  in  Sevastopol,  Eupa- 
torla  roadstead,  Ak  Mechet  harbor,  the  bays  of  Yarylgach  and  Kara- 
dzha,  and  the  narrows  between  Dzharylgach  and  Bakalskaya  to  block 
the  entrance  to  Perekop.   Since  these  harbors  are  not  in  enemy 
hands,  the  mines  can  be  layed  peacefully,  and  entrances  for  our 
own  use  can  be  left  unmined.   In  closing,  Group  South  states  once 
more  that  no  naval  forces  suitable  for  defense  are  available.   (See 
Radiogram  1400.) 

The  Naval  Staff  agrees  wholeheartedly  with  the  pro- 
posals made  by  Group  South,  which  suggest  the  only 
contribution,  unfortunately,  which  the  Navy  can  make 
to  defense,  as  things  stand. 


VIII.  Situation  East  Asia 

1.  Enemy  Situation: 

Radio  monitoring  reveals  that  RAMILLIES  is  bound  for  the 
Indian  Ocean;   INDOMITABLE  is  near  Durban;   in  Singapore  are  EDIN- 
BURGH, cruisers  DANAE,  MAURITIUS,  DAUNTLESS,  DURBAN,  four  destroy- 
ers, and  six  submarines;   in  the  Colombo  area  are  REVENGE,  ROYAL 
SOVEREIGN,  HERMES,  and  EAGLE  (the  latter  not  sure),  furthermore 
cruisers  CORNWALL,  EXETER,  AUSTRALIA,  ENTERPRISE,  GLASGOW,  EMERALD, 
HOBART,  and  several  auxiliary  cruisers  and  destroyers;   in  Bombay 
area  cruisers  LONDON,  DORSETSHIRE,  and  LEANDER,  three  destroyers, 
and  two  gun  boats;   in  Australia  cruisers  CANBERRA,  ADELAIDE,  PERTH, 
and  ACHILLES. 

Reuter  reports  that  U.S.  freighters  MANINI  (3,253  BRT)  and  PRUSA 
(5*113  BRT)  were  sunk  by  torpedoes  during  the  night  of  17  Dec. 
According  to  a  report  from  Batavia,  Japanese  landings  in  Medan 
(Sumatra;  have  not  been  confirmed.  A  report  from  the  U.S.  Navy  De- 
partment states  that  during  the  occupation  of  Wake  Island  four  U.S. 
planes  put  out  of  action  one  Japanese  cruiser,  three  destroyers, 
and  one  submarine.  Furthermore,  U.S.  submarines  are  said  to  have 
sunk  two  more  Japanese  supply  ships  near  the  Philippines,  while  one 
U.S.  destroyer  was  slightly  damaged  during  an  enemy  air  raid.  Ac- 
cording to  a  report  from  the  Vichy  Telegraphic  Service,  Netherlands 
East  Indian  planes  attacked  a  Japanese  transport  successfully  off 
Mlri  in  Sarawak. 

2.  Situation  Japan: 

The  Japanese  Navy  sank  two  enemy  submarines  off  Borneo. 
A  Japanese  destroyer  and  a  motor-minesweeper  were  lost  in  that  en- 
gagement. The  Japanese  troops  which  landed  in  southwest  Borneo 
have  occupied  Kuchlng.  Between  Hawaii  and  the  U.S.  coast  Japanese 
submarines  up  to  25  Dec.  have  sunk  ten  ships  totalling  70,000  BRT, 


9862 

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30  Dec.  19*1  CONFIDENTIAL 

and  damaged  an  additional  eight  totalling  another  70,000  BRT.  ■ 


IX.  Army  Situation 

1.  Russian  Front: 

Southern  Army  Group; 

Rumanian  units  were  forced  to  withdraw  from  positions  near 
Feodosiya.  Arrival  of  the  46th  Infantry  Division  as  planned.   Only 
light  activity  in  1st  Panzer  Army  and  17th  Army  sectors  because  of 
cold  weather  and  snow  storms.   The  6th  Army  could  not  re-establish 
contact  of  its  left  flank  with  the  Central  Army  Group.   The  enemy 
broke  through  at  Tim.  Counterattack  has  been  started.   The  break- 
through gaps  between  the  16th  Infantry  Division  and  the  9th  Panzer 
Division  and  those  at  the  IV  Army  Corps  could  be  closed. 

Central  Army  Group: 

All  attacks  on  the  whole  front  could  be  stopped  by  active 
countermeasures.   Enemy  break-through  near  Likhvin  was  stopped. 

Northern  Army  Group: 

An  enemy  break-through  at  the  6lst  Infantry  Division  pene- 
trated as  far  as  the  Leningrad-Sol tsy  railroad.   Counterattack  is 
in  progress. 

2.  Finnish  and  Norwegian  Front: 

The  island  of  Tytersaari  in  the  Gulf  of  Finland  was  oc- 
cupied by  the  Finns.  At  the  sector  of  the  Karelian  Army  and  the 
Commanding  General,  Norwegian  Theater  enemy  attacks  were  repulsed; 
the  6th  Mountain  Division,  especially,  won  a  decisive  victory  a- 
galnst  stubborn  enemy  attacks  on  the  Murmansk  front  from  21  to  28 
Dec. 

3.  North  Africa: 

The  22nd  British  Armored  Brigade  withdrew  to  the  northeast 
ahead  of  pursuing  Group  Cruewell .  Forty  eight  more  tanks  were  de- 
stroyed. With  the  total  losses  of  the  last  three  days,  the  enemy 
brigade  is  at  least  badly  weakened.  All  is  quiet  on  the  Agedabia 
front;   strong  enemy  artillery  activity  on  the  Bard la- Hal faya  front. 

The  fuel  situation  of  the  troops  is  acute;   that  of  the  Air  Force 
is  Improved.  Possibilities  for  operating  remained  limited  because 
airfields  are  situated  too  far  west  for  the  range  of  our  dive  bomb- 
ers and  pursuit  planes. 


9662 

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CONFIDENTIAL 

31  Dec.  1941 

Items  of  Political  Importance 

Great  Britain: 

Churchill's  speech  to  the  Lover  House  at  Ottawa  contains  a  few  note- 
worthy statements.  He  declared  that  it  is  now  possible  that  this 
war  will  end  without  giving  the  Canadian  Army  the  opportunity  to 
fight  as  much  as  in  World  War  I.  During  the  conferences  with  Roose- 
velt, a  joint  pact  was  signed  by  more  than  thirty  nations  who  are 
resolved  to  fight  until  Hitler's  tyranny,  Japan's  folly,  and  Musso- 
lini's bluff  have  been  eliminated.  There  will  be  neither  treaty 
nor  compromise.  The  enemy's  strength,  however,  demands  the  utmost 
effort.  Had  Prance  evacuated  its  government  to  North  Africa  in  1940 
without  concluding  a  separate  peace,  Italy  would  probably  have  with- 
drawn from  the  war  by  the  end  of  the  year.  But  fortune  has  changed 
now,  and  the  tide  is  starting  to  rise  against  the  Huns.   In  Russia 
and  North  Africa  the  fortunes  of  war  have  turned  against  Germany. 
Allied  armament  will  soon  be  better  than  Germany's.   In  the  coming 
struggle  there  will  be  three  phases: 

1.  A  period  of  consolidation  to  gather  forces  while  fighting 
in  defense. 

2.  A  phase  of  liberation  in  which  the  nations  oppressed  up 

to  that  time  will  be  freed  with  the  aid  of  revolts;   the  Allies  will 
appear  in  these  areas  with  overpowering  strength. 

3.  Attack  on  the  citadels  and  capitals  of  the  guilty  nations 
of  Europe  and  Asia. 

The  speech  is  given  in  detail  in  Political  Review  No.  306,  Para- 
graph 1. 

U.S.A.: 

Reports  from  Argentina,  Brazil,  and  Chile  are  mainly  concerned  with 
conferences  in  preparation  for  the  Conference  of  American  Foreign 
Ministers  at  Rio  beginning  on  15  Jan..  How  far  Argentina,  Brazil, 
and  Chile  can  remain  Independent  in  the  face  of  the  U.S.  alms  of 
consolidation  remains  to  be  seen.  The  Argentine  government  intends 
among  other  things  to  patrol  the  Atlantic  coast  independently,  i.e., 
without  the  support  of  other  fleets,  and  to  limit  operation  of  her 
fleet  to  this  one  activity.  The  Chilean  fleet,  possibly  supported 
by  the  Argentine  Navy  but  by  no  other  South  American  forces,  is  sup- 
posed to  take  over  protection  of  the  Straits  of  Magellan  and  the 
Pacific  coast  of  Chile.  For  further  plans  see  Political  Review  No. 
306,  Paragraphs  3,  4,  and  5. 

China  (Nanking) : 

According  to  an  Embassy  report,  the  capture  of  Hong  Kong  is  stressed 
in  Chinese  publicity  as  a  victory  for  the  concept  of  Greater  Asia. 
The  Japanese  give  free  rein  to  this  propaganda,  but  meet  Chinese  re- 
quests to  share  the  fruits  of  the  Japanese  victory  with  little  en- 
thusiasm. 


9862 
OCT" 


31   Dec.    19*1  CONFIDENTIAL 

India; 

Presumably  considerable  differences  of  opinion  arose  between  Ghandl 
and  the  rest  of  the  Congress  Party  over  the  question  of  India's  at- 
titude toward  Japan  and  led  to  Ghandl* s  withdrawal. 


Conference  on  the  Situation  with  Chief,  Naval  Staff. 

I.  The  Naval  Staff,  Fleet  Operations  Section  reports  on  the  propo- 
sal of  Group  North  to  strengthen  the  PT  boat  and  motor-minesweeper 
units  in  northern  Norway,  which  unfortunately  can  not  be  followed  at 
present.   The  Chief,  Naval  Staff  points  out  that  the  proposal  of  the 
Group  will  have  to  be  considered  in  any  case  when  this  area  is  threat- 
ened more  strongly  by  the  enemy,  particularly  since  light  vessels  op- 
erating from  Narvik  will  always  have  prospects  of  success.  Group 
North's  request  to  the  5th  Air  Force  for  strengthening  air  units  in 
the  northern  Norwegian  area  should  be  supported  by  the  Naval  Staff 

at  Commander  in  Chief,  Air.   The  Chief,  Naval  Staff  furthermore  per- 
mits the  diversion  of  one  submarine  from  the  Azores  group  to  bring  in 
the  important  steamer  ELSA  ESSBERGER  which  is  loaded  with  rubber. 

II.  The  Chief,  Quartermaster  Division,  Naval  Staff  reports  on 
Diesel  oil  in  Norway,  which  is  being  supplied  as  planned.  Among 
other  things  a  large  dump  of  20,000  tons  is  to  be  stocked  in  Trond- 
helm.   The  allocation  of  raw  materials  was  not  discussed  by  the  Com- 
mander in  Chief,  Navy  at  the  Fuehrer  conference  of  29  Dec . .   The 
Chief,  Ordnance  Division,  War  Economy  Branch,  High  Command,  Navy  is 
to  discuss  this  problem  at  the  Armed  Forces  High  Command.   The  Naval 
Staff,  Quartermaster  Division  also  reports  about  the  request  of 
Group  South  for  an  accelerated  and  increased  naval  barge  construc- 
tion program  at  Varna  (see  War  Diary  2b"  Dec. ) .   The  matter  will  be 
handled  further  by  the  Naval  Staff,  Quartermaster  Division  in  agre< 


handled  further  by  the  Naval  Staff,  Quartermaster  Division  in  agree- 
ment with  the  Naval  Staff,  Operations  Division  as  part  of  plans  for 
the  production  of  more  small  naval  vessels  In  the  southeast,  area. 


III.  As  to  the  question  of  how  the  reception  of  the  crew  of  ship  "16" 
is  to  be  handled  by  the  press,  the  Chief,  Naval  Staff,  acting  on  sug- 
gestion  from  the  Naval  Staff,  Operations  Division,  decides  that  on 
the  occasion  of  awarding  the  Oak  Leaf  Cluster  to  Captain  Rogge  a  gen- 
eral statement  is  to  be  made  concerning  the  special  character  and 
significance  of  auxiliary  cruisers.  No  specific  mention  will  be 
made  of  ship  "16"  or  of  other  auxiliary  cruisers  so  as  to  avoid  giv- 
ing helpful  hints  to  the  enemy.  Aside  from  this  operational  point 
of  view,  it  is  out  of  the  question  to  stress  the  specific  achieve- 
ments of  the  ship  commanded  by  Captain  Rogge,  considering  the  per- 
formance of  the  other  successful  auxiliary  cruisers  and  their  com- 
manders and  crews,  some  of  whom  have  been  killed  in  the  line  of  duty. 

IV.  The  Fuehrer's  directive  of  29  Dec,  according  to  which  an  ef- 
fort is  to  be  made  to  divert  as  many  I tal Ian  submarine  a  as  possible 
for  transport  of  supplies  to  North  Africa,  will  bring  real  results 
only  when  these  submarines  have  been  converted  for  their  new  func- 
tion.  Italian  shipyard  facilities  needed  in  this  connection  can  be 
obtained  only  at  the  expense  of  the  number  of  German  submarines  op- 
erating in  the  Mediterranean.  Further  action  on  this  score  is  being 


9862 

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31  Dec.  19*U  CONFIDENTIAL 

taken  by  the  Naval  Staff  in  agreement  with  the  other  offices  con- 
cerned. The  Chief,  Naval  Staff  orders  that  an  attempt  be  made  by 
the  Naval  Staff  to  influence  among  others  Admiral  Bartoldi  in  favor 
of  the  desired  assignment  to  transport  duty. 

V.   Admiral  Riccardi  has  expressed  his  acceptance  of  14  and  15 
Jan.  as  the  new  date  for  a  conference  with  the  Commander  In  Chief, 
Navy. 

VT.  War  Diary,  Part  C,  Vol.  XV  contains  the  regulations  of  the 
Naval  Staff  concerning  authority  in  matters  pertaining  to  coopera- 
tion with  Japan  (l/Skl  I  op  a  29715/41  Gkdos.). 


Situation  31  Dec.  1941 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

According  to  a  bulletin  issued  by  the  U.S.  Navy  Department, 
Admiral  E.  J.  King  took  over  the  position  of  Commander  in  Chief  of 
the  Fleet  on  30  Dec . .  He  has  over-all  command  of  the  operational 
units  of  the  various  fleets  in  the  U.S.  Navy  and  the  operational  for- 
ces of  the  Coast  Guards.  He  is  directly  responsible  to  the  President. 
Until  further  notice  the  main  office  will  remain  in  the  Navy  Depart- 
ment.  (See  Radiogram  1520.) 

South  Atlantic! 

The  Attache  at  Rio  reports  that  U.S.  air  bases  in  eastern 
Brazil  will  be  ready  for  operation  at  the  earliest  in  the  beginning 
of  February.  BIRMINGHAM  arrived  at  Rio,  U.S.  cruiser  CINCINNATI 
arrived  at  Pernambuoo.  A  submarine  warning  was  issued  for  the  area 
180  miles  southwest  of  Freetown.   Our  submarines  are  not  involved  in 
this.  Auxiliary  cruiser  CIRCASSIA  was  Informed  of  the  arrival  of 
various  steamers  in  Curacao. 

2.  Own  Situation: 

Radiogram  2121  contains  instructions  to  motor  ship  PORTLAND 
concerning  the  request  of  the  Japanese  to  await  Japanese  escort  ves- 
sels at  daybreak  3  miles  west  of  Echlzenzaki,  instead  of  2  miles  west 
of  Hinomisakl.  Naval  Attache,  Tokyo  is  to  be  notified. 

Information  on  enemy  situation  in  Radiogram  1143. 

When  the  crew  of  ship  nl6n,  which  has  been  in  the 
Le  Verdon  roadstead  since  30  Dec,  arrives  in  Berlin 
on  3  Jan.  1942,  the  Naval  Staff  will  consider  the  re- 
quest made  by  ship  "10"  to  have  the  gunnery  officer 
of  ship  "16"  assigned  to  them  for  a  short  time  to  in- 
form them  about  the  experiences  on  his  vessel.  On 
the  basis  of  what  happened  on  ship  "16",  permission 
is  granted  to  the  1st  Officer  of  ship  "10"  to  go  to 
the  naval  yard  at  Bordeaux  in  order  to  procure  arma- 


9862 


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31  Deo.  19*1  CONFIDENTIAL 

ment.   Ship  "10 n  18  informed  that  no  further  requests 
for  supplies  and  equipment  are  to  be  made,  emergen- 
cies excepted.   Communication  with  various  shore  bases 
constitutes  a  threat  to  security.   The  vessel  must  be 
ready  to  depart  on  short  notice  beginning  3  Jan. 


II.   Situation  Vest  Area 

1.  Atlantic  Coastt 

The  entrance  to  La  Pallice  vas  temporarily  closed  because 
aerial  mines  were  suspected.  According  to  a  report  from  the  4th 
t  Defense  Division,  British  aerial  mines  are  not  involved,  but  rather 
British  drift  mines  attached  to  parachutes,  which  were  also  seen  in 
the  Oironde  near  Paulllac.  Otherwise  nothing  to  report. 

2.  Channel  Coast; 

Ho thing  to  report. 


III.  Worth  3ea,  Norway,  Arctic  Ocean 

1.  Worth  Sea: 

Enemy  Situation: 

At  noon  radio  intelligence  intercepted  a  British  aircraft 
report  concerning  the  sighting  of  five  merchant  ships  near  Den  Holder; 
during  the  evening  additional  messages  were  intercepted  reporting 
sighting  and  evidently  locating  some  of  our  FT  boats. 

Own  Situation: 

Hothing  to  report. 

2.  Horway: 

Enemy  Situation: 

An  agent's  report  states  that  at  noon  five  large  and  four 
small  submarines  and  several  warships  were  seen  off  Hordkyn.  Accord- 
ing to  the  opinion  of  the  Admiral,  Arctic  Coast,  confusion  with  one 
of  our  convoys  is  possible  and  probable. 

Own  Situation; 

Investigation  of  Kirke  Fjord  revealed  no  more  enemy  forces. 
The  8th  Destroyer  Flotilla  and  the  8th  PT  Boat  Flotilla  together  with 
the  LUEDERITZ  are  bound  for  Narvik  from  Tromsoe.  The  enemy  action 
caused  the  following  losses  in  Vest  Fjord:  A  total  of  thirty  five 
men  missing;   in  the  Hord  Fjord:  Hine  killed,  fifty  four  missing, 
and  five  wounded. 


5862 

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31  Dec.  194l  CONFIDENTIAL 

War  Diary,  Part  C,  Vol.  Ila  contains  the  report  by  the  Commanding 
Admiral,  Norway  on  the  experiences  made  in  the  enemy  operations  of 
26  to  29  Dec,  and  the  conclusions  vhlch  have  been  dravn  (l/Skl 
30278/41  Gkdos.). 

The  Commanding  Admiral,  Norway  requests  that  submarines  newly  as- 
signed to  his  area  be  provided  vith  mine laying  equipment  (see  Radio- 
gram 0845). 

The  opinion  of  the  Commanding  Admiral,  Norway  on  the  War  Diary  of 
submarine  U  "576"  concerning  ice  conditions  and  shipping  in  the 
Arctic  Ocean  in  winter  is  corrected  by  the  Naval  Staff.  According 
to  previous  experience,  it  is  not  true  that  the  entrance  to  the 
White  Sea  freezes  to  the  point  where  all  shipping  traffic  must 
cease.  Actually  traffic  can  be  maintained  by  strong  vessels  and 
with  the  help  of  icebreakers,  so  that  submarine  operations  in  win- 
ter against  Russian  supply  routes  in  this  area  can  be  considered. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea: 

Purther  search  for  minesweeper  M  "557"  remained  fruitless. 

According  to  instructions  from  the  Naval  Staff,  Quartermaster  Di- 
vision, Shipping  and  Transport  Branch  acting  on  suggestion  from 
Group  North  (see  War  Diary  28  Dec),  Reval  is  no  longer  a  port  of 
debarkation.  Transports  for  the  225th  Infantry  Division  will  be 
sent  to  Riga,  and  transports  to  Finland  from  Stettin  to  Abo.  The 
Army  High  Command  urgently  requests  that  Reval  be  retained  as  a 
port  of  debarkation  in  spite  of  the  risk,  and  requests  that  a  de- 
cision be  made  by  the  Fuehrer.  The  decision  comes  through  Captain 
von  Puttkamer.  The  Fuehrer  decides  that  debarkation  is  to  take 
place  in  Riga. 

The  War  Diary  of  the  Commander,  Minelayer  Group  COBRA  from  16  to  31 
Aug.  was  forwarded  by  the  Commanding  Admiral,  Cruisers  without  com- 
ment. This  diary  reports  on  the  two  reinforcement  barrages  layed 
off  Jumlnda  on  20  and  26  Aug.  and  gives  an  Indication  of  the  first 
effects  of  this  successful  barrage.  The  Naval  Staff,  Operations 
Division  on  17  Nov.  1941  had  expressed  itself  as  follows  in  this 
connection: 

"The  preparation  and  laying  of  the  Jumlnda  mine  field  can  be 
considered  a  classic  example  of  a  well-planned  mining  operation. 
It  represents  the  climax  of  mine  warfare  by  the  Navy  in  its  fight 
against  Russia.  The  success  is  to  be  attributed  first  of  all  to 
the  commanding  officers  and  men  of  the  units  concerned.  These  ex- 
ecuted the  Jumlnda  minelaying  operations  with  considerable  effort 
in  a  resolute  and  business-like  manner.  As  rarely  happens,  in 
this  case  the  efficacy  of  a  barrage  was  demonstrated  before  our 
very  eyes,  and  its  devastating  effect  was  evident.  The  extent  of 
its  effect  cannot  yet  be  fully  estimated.  However,  approximately 
forty  Russian  merchant  and  naval  vessels  sank  in  the  mine  field  up 
to  now,  unde**  simultaneous  attack  from  the  Air  Force  and  coastal 
artillery.  Thus  it  is  fulfilling  its  purpose  of  blocking  the  Reval - 
Kronstadt  route. 


9862 
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31  Dec.  19^1  CONFIDENTIAL 

"The  planning  and  laying  of  the  Juminda  barrage  deserve  some 
day  to  be  listed  as  a  special  event  in  the  annals  of  German  naval 
warfare . " 

The  Chief,  Naval  Staff  raised  the  question  as  to  who  planned  the 
Juminda  mine  field.   In  reply  the  Chief,  Operations  Division  called 
attention  to  the  constant  close  contact,  both  personal  and  by  tele- 
phone, between  the  Naval  Staff,  Mine  Warfare  and  Anti- Submarine 
Section  and  Group  North  arising  out  of  the  basic  instructions  con- 
cerning the  use  of  mines  in  the  Baltic  theater  of  war.   One  of  the 
results  was  the  repeated  discussion  of  the  problem  of  keeping  our 
measures  in  pace  with  Army  operations;   consequently  Group  North 
ordered  the  first  actual  plans  on  6  August,  and  directed  the  Com- 
mander, Torpedo  Boats  to  mine  the  Russian  route  in  the  Juminda  area 
immediately.  Further  plans  and  the  laying  of  the  first  barrage  were 
in  the  hands  of  the  Commander,  Torpedo  Boats  and  the  Commander,  Mine- 
layer Group  COBRA.  Later  plans  to  strengthen  the  barrage  were  worked 
out  partly  by  the  Naval  Staff,  Operations  Division,  partly  by  Group 
North,  and  partly  by  the  Commander,  Torpedo  Boats,  depending  on  the 
situation.  The  Commander,  Minelayer  Group  COBRA,  Lt.  Comdr.  Dr. 
Brill  (Reserve),  was  mainly  responsible  for  executing  the  barrages. 
Acting  on  the  suggestion  of  the  Chief,  Naval  Staff,  the  Fuehrer  deco- 
rated Brill  with  the  Knight's  Cross  of  the  Iron  Cross. 


V.   Merchant  Shipping; 

According  to  the  latest  Information  of  the  Naval  Staff,  Intelligence 
Division,  during  the  period  from  1  July  1939  to  1  Oct.  19^1,  i.e., 
twenty  seven  months,  308  vessels  totalling  1,777,895  BRT  were  pro- 
duced and  delivered  in  Britain  and  in  the  U.S.  for  Britain.  This  in- 
cludes thirty  nine  tankers  totalling  approximately  300,000  BRT.  These 
figures  check  fairly  closely  with  the  over-all  tonnage  estimated  by 
the  Naval  Staff,  Intelligence  Division,  but  are  especially  important 
because  they  give  additional  detailed  information,  particularly  con- 
cerning the  centers  of  ship  construction  industry  in  the  Clyde  and  in 
Sunderland.  A  monthly  production  of  80,000  to  100,000  BRT  must  be 
reckoned  with  in  1942.  For  a  detailed  statement  with  the  names  of 
the  new  ships  and  shipyards  covered  see  No.  36/41  of  the  "Foreign 
Merchant  Shipping"  series  Issued  by  the  Naval  Intelligence  Division. 


VI.   Submarine  Warfare 

1.  Enemy  Situation; 

Radio  intelligence  picked  up  a  message  from  transmitter 
Valencia  concerning  sinking  of  British  motor  tanker  CARDITA  in  59°  N 
12°   50'  W  (approximately  90  miles  west  of  Rosemary  Bank).   One  of 
our  outbound  submarines  may  be  responsible.  Radio  decoding  reports 
that  a  convoy  left  Gibraltar  in  the  afternoon  in  westerly  direction. 

2.  Own  Situation; 

Report  in  War  Diary,    Part  B,   Vol.   IV. 


9862 

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31  Dec.  19^1  CONFIDENTIAL 

VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

Light  reconnaissance  activity  on  south  and  southwest 
coasts  of  Britain  with  nothing  particular  to  report. 

2.  Mediterranean  Theater; 

For  reports  of  reconnaissance,  see  Warfare  in  the  Medi- 
terranean, Enemy  Situation. 

3.  Eastern  Front; 

Usual  operations  in  support  of  the  Army. 

4.  Special  Items; 

For  objections  raised  by  Group  North  to  the  fact  that  re- 
connaissance reports  of  the  3rd  Air  Force  are  channelled  via  Group 
West  (Cf.  War  Diary  30  Dec.)  see  Radiogram  0939.   The  matter  has 
been  rectified  by  the  Naval  Staff. 


VIII.  Warfare  in  the  Mediterranean 

1.  Enemy  Situation; 

Western  Mediterranean: 

According  to  Spanish  reports,  many  ships  of  unannounced 
types  passed  Alboran  Island  on  30  Dec.  in  easterly  direction. 

Central  and  Eastern  Mediterranean: 

On  30  Dec.  one  torpedo  boat  and  one  minelayer  were  sighted 
12  km.  off  Bardia  and  were  shelled  by  a  coastal  battery.   On  31  Dec. 
at  0925  five  cruisers  or  destroyers  were  east  of  Bardia  and  shelled 
the  coast.  At  0950  Italian  air  reconnaissance  reported  one  battle- 
ship and  two  cruisers  15  miles  northwest  of  Marsa  Matruh,  course 
150°. 

2.  Own  Situation: 

The  3rd  PT  Boat  Flotilla  returned  to  port  of  operations 
after  completing  mining  mission. 

3.  Situation  Italy: 

The  torpedoed  motor  ship  CITTA  DI  MARSALA  was  brought 
into  Argostoli.  During  an  enemy  air  raid  on  Tripoli  on  29  Dec, 
the  steamer  ANNA  MARIA  was  partly  sunk.   The  Supply  and  Transport 
Office  at  Bardia  reports  that  since  0430  the  fortress  has  been  under 
heavy  enemy  fire.  At  1300  the  enemy  moved  up  to  two  kilometers 
from  Upper  Bardia.  At  1530  the  attack  was  brought  to  a  halt. 


9862 
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31  Dec.  1941  CONFIDENTIAL 

4.  Transport  of  Supplies  to  tdorfo  .Africa; 

On  the  occasion  of  the  report  of  the  Chief,  Naval  Staff 
on  29  Dec,  the  Fuehrer  stated  that  supplies  and  reinforcements  to 
North  Africa  by  means  of  Italian  transport  submarines  is  of  decisive 
importance.  The  submarines  engaged  in  this  operation  are  to  con- 
tinue, and  every  effort  is  to  be  made  to  increase  their  numbers,  if 
necessary  at  the  expense  of  repair  facilities  for  German  submarines. 
The  German  Naval  Command,  Italy  and  the  Commanding  Admiral,  Subma- 
rines are  being  informed.  The  former  is  ordered  to  proceed  accord- 
ingly in  the  future  (Cf .  conference  on  the  situation  with  the  Chief, 
Naval  Staff,  Paragraph  4).   The  problem  will  be  dealt  with  also  at 
the  conference  of  the  Commander  in  Chief,  Navy  and  Admiral  Rlccardi 
on  14  and  15  Jan. 

Nothing  to  report  concerning  transport  movements  on  31  Dec. 

5.  Area  Naval  Group  South; 

Aegean  Sea; 

From  2145  to  0245  during  the  night  of  30  Dec.  enemy  air 
raids  on  Salamis,  Eleusis,  Kalamaki,  and  Tatoi.   One  equipment  dump 
of  the  23rd  Submarine  Flotilla  in  Salamis  was  burned  out.  The 
"Siena"  squadron  entered  Suda  on  30  Dec. 

The  Commanding  Admiral,  Aegean  Sea,  with  the  approval  of  the  Naval 
Staff  and  Group  South,  has  issued  directives  pertaining  to  the  in- 
creasing ship  traffic  and  gradually  growing  anti-submarine  activi- 
ty in  the  Aegean  Sea.  War  Diary,  Part  C,  Vol.  IV  contains  a  copy 
of  the  telegram  sent  for  the  information  of  the  Supermarina  and 
the  German  Naval  Command,  Italy  (l/Skl  op  2142/4  Gkdos.  Chefs.). 

Black  Sea; 

Enemy  Situation; 

According  to  air  reconnaissance,  there  was  no  ship  traf- 
fic between  Eupatoria  and  Sevastopol. 

Own  Situation; 

Nothing  to  report. 

According  to  a  report  from  the  Naval  Commission,  Rumania,  the  con- 
dition of  the  four  Rumanian  destroyers  is  so  bad  that  adequate  re- 
pairs are  possible  only  if  material  is  brought  from  Germany.  Group 
South  requests  that  these  destroyers  be  given  a  priority  equal  to 
that  for  German  vessels,  since  they  represent  the  only  forces  capa- 
ble of  action  in  the  Black  Sea.  At  the  moment  it  is  out  of  the 

uestion  to  use  them  for  the  execution  of  planned  mining  operations 

see  Radiogram  1620). 


I 


The  Naval  Staff,  Quartermaster  Division  will  take  the  necessary 
measures. 

The  Naval  Staff  supports  requests  of  Group  South  (Cf.  War  Diary 

16  and  28  Dec.)  concerning  accelerated  construction  of  naval  barges 


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and  delivery  of  PT  boats  and  motor-minesweepers  in  the  spring 
(Directive  I  op  30038/41  Gkdos.).  Copy  in  War  Diary,  Part  C, 
Vol.  XIV. 

The  Naval  Staff  also  gives  support  to  the  request  of  Group  South 
to  make  up  for  the  fact  that  the  production  of  Rumanian  submarines 
was  held  up  due  to  delayed  deliveries  and  various  changes  by  send- 
ing these  boats  on  operations  as  early  in  1942  as  possible.  The 
Naval  Staff  also  supports  the  transfer  of  the  Finnish  submarine  to 
the  Black  Sea  if  the  boat  is  suited  for  the  purpose.  War  Diary, 
Part  C,  Vol.  XIV  contains  a  copy  of  the  directive  to  the  Naval  Staff, 
Quartermaster  Division  (l/Skl  30142/41  Gkdos.). 

6.   Situation  Turkey: 

According  to  a  report  from  the  Naval  Attache,  Istanbul, 
Anglo-Turkish  military  cooperation  exists  only  in  the  sense  that 
the  Turks  take  what  they  can  get,  but  are  prepared  to  make  returns 
only  to  a  very  small  extent.  A  copy  of  the  report  of  the  Attache 
as  requested  by  the  Naval  Staff  through  the  Naval  Attache  Section 
is  in  War  Diary,  Part  C,  Vol.  XIV  (l/Skl  30142/41  Gkdos.). 


IX.   Situation  East  Asia 

1.  Enemy  Situation: 

Military  Attache,  Bangkok  reports  that  General  Wavell  has 
been  assigned  to  command  the  Burma  front.  Reinforcements  have  ar- 
rived in  Malaya  from  India.  Heavy  Japanese  air  attacks  took  place 
at  Medan  (Sumatra),  as  veil  as  on  Celebes  and  in  New  Guinea. 
Strength  of  British  troops  in  northern  Malaya  estimated  at  50,000 
men.  Aerial  traffic  from  Britain  to  Australia  and  New  Zealand  is 
to  continue  on  a  different  route. 

2.  Situation  Japan: 

The  U.S.  island  Jolo  between  Borneo  and  the  Philippines 
was  occupied.  According  to  a  report  from  the  Japanese  Headquarters, 
enemy  submarines  have  begun  to  block  the  approaches  to  the  Hawaiian 
Islands.   In  the  period  from  22  to  28  Dec,  the  Japanese  Air  Force 
destroyed  a  total  of  fifty  six  enemy  planes  near  Borneo,  in  the 
South  China  Sea,  and  in  the  Sulu  and  Celebes  Seas.   It  is  probable 
that  Japanese  vessels  are  near  Alaska. 


X.   Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

Attack  of  the  LIV  Army  Corps  near  Sevastopol  advanced  only 
slowly.  Rumanian  mobile  units  were  preparing  to  counterattack  with 


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parts  of  the  46th  Infantry  Division.  Because  of  bad  weather>  there 
were  only  smaller  skirmishes  on  the  1st  Panzer  Army  front.   At  the 
sectors  of  both  the  17th  and  the  6th  Armies  enemy  attacks  were  re- 
pulsed. 

Central  Army  Group: 

An  enemy  penetration  at  the  junction  of  the  Army  Groups 
was  cut  off.   Enemy  attacks  were  repulsed  at  Tim,  Droskovo,  and 
Byelev.   At  the  29oth  Infantry  Division  many  casualties  due  to 
freezing.   Severe  enemy  attacks  along  the  whole  of  the  Moscow  front. 
All  but  two  penetrations  were  repulsed. 

Northern  Army  Group; 

Counterattacks  of  the  6lst  Infantry  Division  not  yet  ter- 
minated.  Otherwise  the  situation  remains  unchanged. 

2.  Finnish  and  Norwegian  Front: 
Nothing  to  report. 

3.  North  Africa: 

The  enemy  withdrew  en  masse  in  the  Saunnu-Attelat  area. 
A  Polish  brigade  was  brought  up  closer  to  the  Agedabia  position. 
The  Panzer  Group  conducted  increased  reconnaissance  operations  in 
the  direction  of  Saunnu-Attelat.  After  a  three-hour  artillery  bar- 
rage, the  enemy  attacked  Bardia  fortress,  supported  by  air  and 
naval  forces.   In  view  of  its  few  defensive  forces,  the  fall  of 
the  fortress  must  be  counted  on.   In  the  period  from  19  Nov.  to 
31  Dec,  a  total  of  1,246  enemy  tanks  and  armored  cars  and  271 
planes  were  destroyed.   The  enemy  is  paying  dearly  for  his  success. 


#♦♦*********+#*********♦* 


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CONFIDENTIAL 
GLOSSARY  FOR  DECEMBER  19^1 


A  B  CD  Powers 

This  refers  to  America,  Britain,  China,  and  the  Dutch  East  Indies 

Barbarossa 

Cover  word  for  the  invasion  of  Russia  in  June  1941. 

Bernardo 

Cover  name  for  a  secret  German  submarine  supply  base  at  Vigo, 
Spain . 

Blau  16 

A  reference  point  on  route  "80"  (see  below)  at  57°  18. 4 •  N; 
21°  16.7'  E. 

Blau  18  A 

A  reference  point  on  route  "80"  (see  below)  between  Memel  and 
Riga. 

C  mine 

See  EMC  mine. 

Deutsche  Werft 

A  German  shipbuilding  company  in  Kiel. 

DNB 

Deutsches  Nachrichten  Bureau,  the  official  German  news  agency. 

Domei 

Japanese  news  agency. 

EMC  mine 

Standard  mine  Type  C;  a  contact  mine  against  surface  vessels. 

Etappe 

Secret  German  naval  organization  for  providing  German  naval 
units  with  information  and  supplies  from  foreign  bases. 

Europapress 

Semi-official  German  news  agency. 

Fab  XI 

~~~  A"  combination  magnetic  and  acoustic  firing  device  for  mines. 

Gat  a 

Cover  name  for  secret  German  submarine  supply  base  in  Spanish 
waters  at  36°  32.25'  N,  6°  15.7'  W  (off  Cadiz,  Spain). 

Kuhlemeyer  car 

A  specially  constructed  platform  car,  suitable  for  accommodating 
very  heavy  loads.  Such  cars  were  built  by  the  Kuhlemeyer  Manu- 
facturing Company. 

LM 

Parachute  mine. 

Type  blue:  With  regular  polarity  magnetic  firing  device. 
Type  red:   With  reversed  polarity  magnetic  firing  device. 
Type  green:  With  acoustic  firing  device;  has  stripping  pre- 
vention equipment  (GE)  and  period  delay  mech- 
anism (Z.K.). 


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MarkXT/jmlne 

A  British  contact  mine  consisting  of  a  center  belt  8  inches  «Ua 
and  tvo  hemispheres  40  inches  in  diameter,  vhich  are  velded  to 
the  former. 

Mark  XVI  nine 

A  British  contact  mine  similar  to  the  Mark  XIV  mine.   It  consists 
of  a  center  belt  4£  inches  wide  and  tvo  hemispheres  40  inches  in 
diameter,  vhich  are  velded  to  the  former. 

KFF   (Marinefaehrprahm) 

Multi-purpose  vessel  similar  to  the  American  LCT.  Had  an  average 
displacement  of  J00  tons.  Used  as  ammunition  carrier  (Kunitions- 
faehrprahm),  landing  craft,  naval  transport,  artillery  transport 
"barge  (Artllleriefaehrprahm),  small  troop  transport,  etc. 

Nevs  Analysis  "Foreign  Navies"   (Nachrichtenausvertung  "Fremde  Marinen'} 
A  daily  analysis  of  foreign  newspaper  reports  concerning  foreign 
naval  nevs,  compiled  by  the  Naval  Staff,  Intelligence  Division 
(3/Skl). 

Nevs  Series  "Foreign  Merchant  Shipping" 

A  series  of  condensed  data  concerning  foreign  merchant  shipping; 
compiled  and  published  periodically  by  the  Naval  Staff,  Intelli- 
gence Division  (3/Skl). 

PSLAGOS 

A  German  supply  and  repair  ship  stationed  in  Narvik,  Norvay. 

Political  Reviev 

A  daily  reviev  of  political  developments  abroad  published  by  the 
Naval  Staff,  Intelligence  Division  (3/Skl). 

Route  "Anton"   (Weg  Anton) 

A  certain  route  to  be  taken  by  enemy  ships  taken  as  prizes  by  the 
Germans,  vhen  being  brought  into  German  or  German  occupied  ports. 
Geographical  borders  of  route  "Anton":  The  French  coast  to  47° 
30'  N;   470  30'  N,  29°  W;   4^°  N,  40°  W;  37°  N,  40°  V;   contin- 
ued on  37°  N;   south  and  east  chop  is  submarine  operations  zone. 

Route    "80"      (Weg  80) 

Mine -free  German  deep-vater  shipping  route   in  the  Baltic   Sea  from 
Svinemuende   to  Riga. 

Route  "Lila"   (Weg  Lila) 

Mine -free  German  shipping  route  to  the  vest  of  route  "Rosa"  (see 
belov),  branching  off  "Rosa"  near  Ostende  and  rejoining  it  near 
Calais . 

Route  "Rosa"   (Veg  Rosa) 

Mine -free  German  coastal  shipping  route  through  the  Channel,  be- 
ginning off  Blankenberghe,  Belgium  and  ending  off  the  island  of 
Ouessant  vest  of  Brest,  France. 

Seeloeve 

Cover  name  for  the  planned  invasion  of  England. 


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Specht  (Punkt  Specht) 

A"  reference  point  for  the  German  blockade-runner  SPREEWALD  home- 
ward bound  from  Japan,  located  at  7°  30'  N,  39°  35'  W  (off  the 
northern  coast  "of  South  America). 

Staatsrat 

An  honorary  title. 

Supermarina 

The  Italian  Admiralty. 

Tanks  II.  Ill,  IV  (Pz  Kpfw  II,  III,  IV) 

Type  II:  Eight  tank,  from  11.5  to  13.2  tons  depending  on  model, 

Type  III:  Medium  tank,  approximately  24.6  tons. 

Type  IV:  Medium  tank,  26  tons. 

TMB  mine 

Torpedo  mine  Type  B,  a  magnetic  ground  mine. 

Todt  Organization  (O.T.) 

A  construction  organization  (named  for  the  founder),  which  built 
the  German  superhighways,  the  Vest  Wall,  and  the  Atlantic  forti- 
fications.  It  employed  domestic  and  foreign  labor  on  military 
projects  in  Germany  as  well  as  outside  Germany. 


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